(30 marks) Question two: Beirut company share capital was 200,000 ordinary shares at par value si, and 10%, 8000 preference shares at par 100$ are outstanding in 31/12/2018. The company reports income from continuing operations before income tax 870,000$, the following additional transaction not considered in that income: 1) During 2018 the company sold truck for 18.000$ which has originally cost 36,000$ and accumulated depreciation of 16,000$. 2) The company decided to discontinued one of its division in 1/10/2018, the operating losses from 1 January 2018 to 30 September 2018 was $150,000, the realized losses from 1/10/2018 to 31/12/20018 was $50000. 3) During the year 2018 the company sold a part of its portfolio which resulted in a gain of 16000$, but the accountant recorded $61,000 gain. 4) The auditor discovered an error in recording bad debit expenses which overstate by 70,000$ for the year 31/12/2017. 5) The company decided to change the installment method to percentage of completion methods in recognize revenues from constructions, the effects for this change was decrease income for 2016 by 250,000$, increase income for 2017 by 180,000$ and decrease income for 2018 by 100,000$. 6) 1/1/2018 retained earnings was 1.020.000$, dividend for 2018 declared and paid to ordinary 150,000$ and for preferred their amounts. Required: (assuming the tax rate where is it needed 20%) 1- Analyze the above transaction and prepare an income statement for the year 2018. (Start with income from operating). 2- Compute earnings per share as it should be shown on the face of the income statement. 3- Prepare the retained earnings statement for the year 2018. sold=181000 Cost- 360oo 36606_181000 - 18000 16:00 2000 D. Accider=160 360 (30 marks) Question two: Beirut company share capital was 200,000 ordinary shares at par value si, and 10%, 8000 preference shares at par 100$ are outstanding in 31/12/2018. The company reports income from continuing operations before income tax 870,000$, the following additional transaction not considered in that income: 1) During 2018 the company sold truck for 18.000$ which has originally cost 36,000$ and accumulated depreciation of 16,000$. 2) The company decided to discontinued one of its division in 1/10/2018, the operating losses from 1 January 2018 to 30 September 2018 was $150,000, the realized losses from 1/10/2018 to 31/12/20018 was $50000. 3) During the year 2018 the company sold a part of its portfolio which resulted in a gain of 16000$, but the accountant recorded $61,000 gain. 4) The auditor discovered an error in recording bad debit expenses which overstate by 70,000$ for the year 31/12/2017. 5) The company decided to change the installment method to percentage of completion methods in recognize revenues from constructions, the effects for this change was decrease income for 2016 by 250,000$, increase income for 2017 by 180,000$ and decrease income for 2018 by 100,000$. 6) 1/1/2018 retained earnings was 1.020.000$, dividend for 2018 declared and paid to ordinary 150,000$ and for preferred their amounts. Required: (assuming the tax rate where is it needed 20%) 1- Analyze the above transaction and prepare an income statement for the year 2018. (Start with income from operating). 2- Compute earnings per share as it should be shown on the face of the income statement. 3- Prepare the retained earnings statement for the year 2018. sold=181000 Cost- 360oo 36606_181000 - 18000 16:00 2000 D. Accider=160 360