PROBLEM 1 (ZAPORRO COMPANY)

PROBLEM 1 (CAFURRO COMPANY): In your audit of zaporne Company for thecalendar yearended December 31, 3032, you discovered the breakdown of the company's Rew tied Simms account Balance, january 1 Unrealized holding loss on financial assets held at fair value | through other comprehensive income . .. Inventory fire Inis 1350 000 i lumpainvent loss on machinery 254 stock dividends (declared on 100,020 shares outstanding at market wilbe of Pi12 per share) Loss on sile of equipment Prior period error correction (1,coocoo Passion THirement ofordinary sharesasmary (1,050 00m join on pre-mature retirement of bonds payable 100100 Unrealized holding gain on financial assets held at fair value through profit or loss Proceeds from sale of donated shares (originally issued at P500,000) Net income for the year Appropriation for measury shares at cast Audit notes 1. The 254 stock dividends on ordinary shares with par value of Foo were declared on Nowmher 1 2022 distributed to amekholders on January 15, 2021 of record on December 1, 2022. Zapormo's stocks were selling at P105 on November 1. P110 on December 1, and P112 on December 31. 2 The compare's Share Premium from Treasury Stock Transaction amounted to P750 020 The company's management decided to change its inventory ording method from the walghted average (WAVE] in the first-in, first-out (FIFO) method during the current year. The In wmary balances under two methods are as follows: Ending Inventory. 2021 Finding Inventory. 202g 2500,000 3001000 2600 00