Question 8 Part A (15 marks) Al Salam Company began operations in 2016. Since then, it has reported the following gains and losses for its investments in trading securities on the income statement: Gains (losses) from sale of trading investments 2016 2017 2018 $15,000 $(20,000) $14,000 Unrealized holding gains (losses) on valuation of trading (25,000) 10,000 (30,000) investments Required For Al Salam Company: Calculate the balance in the Fair Value Adjustment account a adjusting entry for 2018 is made). SHARE OR POS mber 31, 2018 (after the Part B The following scenarios are independent from each other 1. Al Faris Corp. issued 6,000,000 par value 10% convertible bonds at 98. The liability component alone would have been valued at 95. 2. Al Rassam Company issued 7,000,000 par value 10% bonds for 6,860,000. One share warrant was issued with each 100 par value bond. At the time of issuance, the warrants were selling for 4. The net present value of the bonds without the warrants was 6,720,000. 3. Mazaya, Inc. had an 11%, 5,000,000 par value bonds. These bonds were converted into 500,000 shares of 1 par value ordinary shares on July 1, 2015. The carrying amount of the debt component on July 1 was 4,800,000. The Share Premium-Conversion Equity account had a balance of 100,000 and the company paid an additional 35,000 to the bondholders to induce conversion of all the bonds. Required: For each of the above scenarios, prepare the necessary journal entry(ies) required to record each transaction: