Case four : (20 marks) During 2019 ROD Company has the following changes in its ordinary outstanding: Dates Shares changes Number of shares January 1 Beginning balance 280000 February 28 Issued 20000 May 31 Acquisition of share for treasury 50000 August 1 20% share dividends Oct 1 shares issued for cash 120000 Nov. 1 Sold treasury shares 30000 Dec1 Share split 1to3 after treasury Other Decl After split issued 150,000 informati on: 1- Company has 2% convertible bonds (every $10 bonds can be convert for one ordinary share) at $5000000, interest paid seminally June 30and December 31 2- Share options for the manager was outstanding during the period, the option was rights to manager to purchase 10000 shares at $8, the share par value was $5 and the market price $16. 3- 5% cumulative preference share (10000 shares at $40), there isn't dividend in arrears can be convert to 100,000 ordinary shares. 4- The beginning balance for retained earnings 1,200,000. Sales revenues 1000000, Operating expenses was 640,0000 including cost of goods sold 400,000, the interest for the years was just for bonds, other losses or gains credit 40,000, the rate of income tax was 20%. Required According to above information compute basic and diluted earning per share and represented in the income statement for the year ended 31, December 2019? Case five : (15 marks) At 31/12/2018 Sad co. has the following securities in its investment portfolio ;( all are holding for sale) 50000 shares of Yara company $200000 30000 shares of Handee company $180000 25,000 shares of fatma company $250000 Fair Market Adjustments account shows $1300 debit balance During 2019 Sad co. had the following transaction in investment securities: 1-15/01/2019 sold Yara securities at $7 2-1/3/2019 purchased 100,000 shares of Al Rahman co. ordinary shares for $3.5 for each. 3-1/05/2019sold 10000 of Handee at $6. 4-1/7/2019 purchased 5,000 shares of fatma company ordinary shares for $12 for each. 5-15/7/2019 purchased 10,000 shares of Kareem co. ordinary shares for land cost $180,000. 6- 31/07/2019 received $10000 from Handee Company as dividend. 7- 31/08/2019 sold 10,000 Handee shares at $3. 8-30/09/2019 received $20000 from Al rahman Company as dividend. 9-31/10/2019 purchased for $250000 (100,000@2) ordinary shares from total 400,000 RAD ordinary shares. (not for sale) 10-31/12/2019, received dividend from RAD co. $5,000 and total net income for RAD Co. was $180,000 The fair market value for the stocks at 31/12/2019 was Handee company 6.5 Fatma company 10.5 Al rahman company 3.4 Kareem 19 19 Required: 1) Journalized the above transactions? 6 2) Journalized the adjusted entry to record securities at fair market values at 31/12/2019? 3) Prepare T-account for investment holding for sale and investing for non-sale. Case four : (20 marks) During 2019 ROD Company has the following changes in its ordinary outstanding: Dates Shares changes Number of shares January 1 Beginning balance 280000 February 28 Issued 20000 May 31 Acquisition of share for treasury 50000 August 1 20% share dividends Oct 1 shares issued for cash 120000 Nov. 1 Sold treasury shares 30000 Dec1 Share split 1to3 after treasury Other Decl After split issued 150,000 informati on: 1- Company has 2% convertible bonds (every $10 bonds can be convert for one ordinary share) at $5000000, interest paid seminally June 30and December 31 2- Share options for the manager was outstanding during the period, the option was rights to manager to purchase 10000 shares at $8, the share par value was $5 and the market price $16. 3- 5% cumulative preference share (10000 shares at $40), there isn't dividend in arrears can be convert to 100,000 ordinary shares. 4- The beginning balance for retained earnings 1,200,000. Sales revenues 1000000, Operating expenses was 640,0000 including cost of goods sold 400,000, the interest for the years was just for bonds, other losses or gains credit 40,000, the rate of income tax was 20%. Required According to above information compute basic and diluted earning per share and represented in the income statement for the year ended 31, December 2019? Case five : (15 marks) At 31/12/2018 Sad co. has the following securities in its investment portfolio ;( all are holding for sale) 50000 shares of Yara company $200000 30000 shares of Handee company $180000 25,000 shares of fatma company $250000 Fair Market Adjustments account shows $1300 debit balance During 2019 Sad co. had the following transaction in investment securities: 1-15/01/2019 sold Yara securities at $7 2-1/3/2019 purchased 100,000 shares of Al Rahman co. ordinary shares for $3.5 for each. 3-1/05/2019sold 10000 of Handee at $6. 4-1/7/2019 purchased 5,000 shares of fatma company ordinary shares for $12 for each. 5-15/7/2019 purchased 10,000 shares of Kareem co. ordinary shares for land cost $180,000. 6- 31/07/2019 received $10000 from Handee Company as dividend. 7- 31/08/2019 sold 10,000 Handee shares at $3. 8-30/09/2019 received $20000 from Al rahman Company as dividend. 9-31/10/2019 purchased for $250000 (100,000@2) ordinary shares from total 400,000 RAD ordinary shares. (not for sale) 10-31/12/2019, received dividend from RAD co. $5,000 and total net income for RAD Co. was $180,000 The fair market value for the stocks at 31/12/2019 was Handee company 6.5 Fatma company 10.5 Al rahman company 3.4 Kareem 19 19 Required: 1) Journalized the above transactions? 6 2) Journalized the adjusted entry to record securities at fair market values at 31/12/2019? 3) Prepare T-account for investment holding for sale and investing for non-sale