[10 marks] Question 1: Presented below are balances of equity accounts at 1/1/2019 at Petra Co.: Capital Additional paid in capital Retained earnings 800,000 200,000 130,000 During 2019 the following additional information is provided: 1- Petra issued 100,000 ordinary shares at $2, with sales price (market price) $1.5 2- Petra declared and paid dividends at $60,000 3- Net income for 2019 was $200,000 4-treasury shares were purchased at a cost of $40,000 5-accumulated other comprehensive income was $10,000 Prepare statement of changes in equity for 2019. Then answer the questions at answer sheet page No. 1 Question 2: [10 marks] The following balances were taken from adjusted trial balance (partial trial balance) at 31/12/2019: Sales revenue 130000 Revaluation surplus 1500 Freight out 4700 Unearned revenue 3500 Sales returns and allowances 10000 Building held for investment 25000 Loss on division disposal 3000 land 20000 cash 20000 Cost of goods sold 65000 Building-held for use in Interest expense 5000 operation 75000 capital 14000 Salaries expenses 6000 Accumulated depreciation-building 7500 Retained earning 45000 Dividends revenue 2000 Loss on litigation 1000 Depreciation exp-building 2500 Bad debt expense 400 Additional information: 1-30% of the building is occupied by the sales department 2- applicable tax rate = 10% 3-50% of salary expense is for sales department 4- ordinary shares outstanding for 2019 total 100,000 shares Required: prepare statement of comprehensive income for 2019- use one statement approach. (use table at page 4 to prepare the statement) 1 prepare non-current assets section at statement of financial position at 31/12/2019