Head the career and an awer the west at the end of each port. Asment Scenario Part.A06 Marks Mr. Ahmed is a fresh graduate has been moved by be c ome the Country Prime Company. The comi n g met various etes in the country. The company is focused on the b o th we made for locales. The company on the local securita t the end of 2015 and Me Almedd eland e for the company. Glue the importance of the care pershare for to the commo n them as a perform e d to do the Therohet to the cathe Theorg he woonhe gathered 1 There were 2.500.000 shares outstanding at the beginning of 2019 2 The com as preference share of $6.000.000 at the 2019. These cum convence r w here the green shoes wered t per Each preference to worry . The con w of reference shares must be adjusted for any share dividend or share during the year. On 1 May 2019.250.000 preference shares have been convertedord a re Another 250,000 shares have been repurchased at cost on the same date. The m o re were outstanding until year-end. The preference dividend is paid every months The company has two convite detruments outstanding at the end of 2019 as follow a Convertible bond class A: This is a $1.000.000 face value. 1 year bond that wa wedo a ry 2016. These bonds pay interest semiannually and are convertible into 500.000 dinary shares. The total issue price of the bond was $1,100,000 October 2019, the holders of the bonds converted 30% of them into ordinary shares b. Convertible bond This is a $5.000.000 face valu, 10 year bond that was issued on 1 October 2013. Each $10 bond is convertible w a y shares. The bonds pay interest annually. The total sue price of the bond was $6,000,000 4. On 1 March 2019, the company declared and distributed 20% share dividend to outstanding shareholders 5. On 1 April 2019, The Company executed a share split on outstanding shares 6. On 1 January 2019, the company granted its executives 120.000 options with an exercise price of $25 per share. The options are valid for two years and are considered for compensation purpose The service period was estimated to be two years. The options were valued at $1.00.000. The Date Percentage of options exercised Average market price per share 15 The average market price of ordinary shares on 31 December 2019 was $20 per share 7. Net income for 2019 was $16.000.000 & The effective market rate was 8x and the tax rate was 25% d e to be w o s ? 1. The w h are figures on the most important reported for public companies such as Prime Co Maximum 20 marts 2. Do you that the pershare is also important for pr u mmum 2002 marts ing them in PART Alhove,calate the following The basic caring per har for the year 2015. Show all your c b. The diluted earning per here for the year 2015. Show all your c omm e o mparts 6 of 8 Part .marks Consider the information presented in Port Alin addition consider the following We Armed was thering the information, hediscover i ng There December 2009 a 2009, men had d e hace of 50.000 the accounting treatment for these investments, Mr. Ahmed discovered that there utant de the following For investment A). This investment was acquired at the beginning of 2019. The com purchased 8.000 hores of Com A for $12 ore. The companhed 4000 for brokerage fees. The previous contacted the full cash payment investment b. For investments and the previous accountant has been awa r d holding in floss by the end of each year as part of the income Statement For investment this investment was made in 2018. The com b ines that has gained significant influence over the investee upon action of the investment Nonetheless, the previous accountant und the far value method to account for this 2. The accountant calculated the compensation expense for 2019, assuming a one-year service period 3. The company has a debt investment with a remaining maturity term of 3 years as of 31 December 2019. This investment is related to bonds issued by Ron Company. The bonds have a face value of $600.000 with a coupon rate of 12% and 5 year maturity term interests received annually on 1 January and 30 December. On 31 December 2019, just after the receipt of interest but before the preparation of the financial statements for the year, Rajan Company formed Prime Company that it is no longer able to honoritture gations with regard to the bonds and asked for renegotiation of the original terms. On the same day, both companies agreed to reduce the coupon rate and reduce the maturity auto 0000 for the remaining term of the bonds. They have a greed that in the current financial station of the effective market rate should be adjusted to . The announcement made by Ron and the w eng iation of the band terms on 31 December 2019, w otected in the fancial statements of 2019 What is the relationship between percentage and which criterio de you believe is more importante casing ite ms their appropriate accounting methodowe percentage orica n ce? your answer words are 2. Using the highed in part AND the information presented in Port Alcate the basic earnings per share for the year 2018. (Show all your calculation Smart Head the career and an awer the west at the end of each port. Asment Scenario Part.A06 Marks Mr. Ahmed is a fresh graduate has been moved by be c ome the Country Prime Company. The comi n g met various etes in the country. The company is focused on the b o th we made for locales. The company on the local securita t the end of 2015 and Me Almedd eland e for the company. Glue the importance of the care pershare for to the commo n them as a perform e d to do the Therohet to the cathe Theorg he woonhe gathered 1 There were 2.500.000 shares outstanding at the beginning of 2019 2 The com as preference share of $6.000.000 at the 2019. These cum convence r w here the green shoes wered t per Each preference to worry . The con w of reference shares must be adjusted for any share dividend or share during the year. On 1 May 2019.250.000 preference shares have been convertedord a re Another 250,000 shares have been repurchased at cost on the same date. The m o re were outstanding until year-end. The preference dividend is paid every months The company has two convite detruments outstanding at the end of 2019 as follow a Convertible bond class A: This is a $1.000.000 face value. 1 year bond that wa wedo a ry 2016. These bonds pay interest semiannually and are convertible into 500.000 dinary shares. The total issue price of the bond was $1,100,000 October 2019, the holders of the bonds converted 30% of them into ordinary shares b. Convertible bond This is a $5.000.000 face valu, 10 year bond that was issued on 1 October 2013. Each $10 bond is convertible w a y shares. The bonds pay interest annually. The total sue price of the bond was $6,000,000 4. On 1 March 2019, the company declared and distributed 20% share dividend to outstanding shareholders 5. On 1 April 2019, The Company executed a share split on outstanding shares 6. On 1 January 2019, the company granted its executives 120.000 options with an exercise price of $25 per share. The options are valid for two years and are considered for compensation purpose The service period was estimated to be two years. The options were valued at $1.00.000. The Date Percentage of options exercised Average market price per share 15 The average market price of ordinary shares on 31 December 2019 was $20 per share 7. Net income for 2019 was $16.000.000 & The effective market rate was 8x and the tax rate was 25% d e to be w o s ? 1. The w h are figures on the most important reported for public companies such as Prime Co Maximum 20 marts 2. Do you that the pershare is also important for pr u mmum 2002 marts ing them in PART Alhove,calate the following The basic caring per har for the year 2015. Show all your c b. The diluted earning per here for the year 2015. Show all your c omm e o mparts 6 of 8 Part .marks Consider the information presented in Port Alin addition consider the following We Armed was thering the information, hediscover i ng There December 2009 a 2009, men had d e hace of 50.000 the accounting treatment for these investments, Mr. Ahmed discovered that there utant de the following For investment A). This investment was acquired at the beginning of 2019. The com purchased 8.000 hores of Com A for $12 ore. The companhed 4000 for brokerage fees. The previous contacted the full cash payment investment b. For investments and the previous accountant has been awa r d holding in floss by the end of each year as part of the income Statement For investment this investment was made in 2018. The com b ines that has gained significant influence over the investee upon action of the investment Nonetheless, the previous accountant und the far value method to account for this 2. The accountant calculated the compensation expense for 2019, assuming a one-year service period 3. The company has a debt investment with a remaining maturity term of 3 years as of 31 December 2019. This investment is related to bonds issued by Ron Company. The bonds have a face value of $600.000 with a coupon rate of 12% and 5 year maturity term interests received annually on 1 January and 30 December. On 31 December 2019, just after the receipt of interest but before the preparation of the financial statements for the year, Rajan Company formed Prime Company that it is no longer able to honoritture gations with regard to the bonds and asked for renegotiation of the original terms. On the same day, both companies agreed to reduce the coupon rate and reduce the maturity auto 0000 for the remaining term of the bonds. They have a greed that in the current financial station of the effective market rate should be adjusted to . The announcement made by Ron and the w eng iation of the band terms on 31 December 2019, w otected in the fancial statements of 2019 What is the relationship between percentage and which criterio de you believe is more importante casing ite ms their appropriate accounting methodowe percentage orica n ce? your answer words are 2. Using the highed in part AND the information presented in Port Alcate the basic earnings per share for the year 2018. (Show all your calculation Smart
