1 QUESTION Alps Ltd has a net income after tax of $1 500 000 for the year ended 30 June 2019. At the beginning of the period Alps Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 December 2018 Alps Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2019 Alps Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings. The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Alps Ltd also had 500 000, $1.00, 8% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2018 was $1.50 per share. Required:

a) Calculate the basic EPS amount for 2019 and provide the adjusted comparative EPS for 2018.

2 QUESTION -Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot rates at each date are shown as follows: Date Event Spot rate 15 March 2019 Order 300,000 of inventory A$1.00 = 0.37 11 May 2019 Purchase takes place as inventory shipped to Fujitsu Ltd (FOB) A$1.00 = 0.41 30 June 2019 End of financial year A$1.00 = 0.43 02 July 2019 Inventory arrives at warehouse A$1.00 = 0.42 14 August 2019 Payment of 300,000 to supplier A$1.00 = 0.39

Required:

a) Prepare appropriate journal entries for each relevant event. (Round amounts to the nearest dollar). Show your working.