The following transactions and events relate to financing cycle transactions:

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 reserve for bond retirement.

10. Announce a 2 -for-1 stock split.

Required:

a. Identify the substantive test(s) that will be useful in verifying each transaction or event.

b. For each procedure in b indicate the type of audit evidence obtained.