The following transactions and events relate to financing transactions at Weber Inc. 1. Declare cash dividend on

Question:

The following transactions and events relate to financing transactions at Weber Inc.

1. Declare cash dividend on common stock.

2. Issue bonds.

3. Pay bond interest.

4. Purchase 500 shares of treasury stock.

5. Pay cash dividend declared in 1 above.

6. Issue additional common stock for cash.

7. Accrue bond interest payable at year-end.

8. Redeem outstanding bonds.

9. Establish appropriation for bond retirement.

10. Announce a two-for-one stock split.

Required

a. Identify the substantive test that should verify each transaction or event.

b. For each test, indicate the financial statement assertion(s) to which it pertains.

c. Indicate the source of evidence obtained from the substantive test (i.e., outside party, client-generated, auditor personal knowledge or observation, documented, oral. (Use a tabular format for your answers with one column for each part.)

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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