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Question No 3: (10 Marks) A) Letus Corporation is manufacturing toys cycles in Sultanate of Oman. It is registered with 5,000 equity shares. Suppose you

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Question No 3: (10 Marks) A) Letus Corporation is manufacturing toys cycles in Sultanate of Oman. It is registered with 5,000 equity shares. Suppose you have 4% ownership interest (200 equity shares) in Letus Corporation. Corporation declares 20% stock dividend during the year. Find out your new ownership interest and calculate the number of shares owned by you after stock dividend. B) AL Noura Company was engaged in selling of boats in Muscat, Sultanate of Oman. It has retained earnings of OMR 700,000 on 1st January 2019. During the year, company declared and paid the 12% stock dividend and a cash dividend of OMR 50,000. After publishing the financial statements for the year 2019, The Company found the following accounting errors concerned with the year 2018: Understatement of net income because of inventory computational errors OMR 30,000. Overstated sales expense by OMR 200,000. Overstated Insurance expense was recorded at OMR 65,000 You are required to prepare the retained earnings statement for the year 2019. Question No 4: (10 Marks) AL Hind Travel Corporation (a Multinational Company) was operating its business of serving the travel packages for the tourists of all the countries in the world. It has 60,000 shares of OMR 8 par value equity stock outstanding as follow: Paid - up - capital (60,000 Shares @ OMR 8 par value) OMR 480,000 Retained Earnings OMR 325,000 Paid-in-capital in excess of par value OMR 120,000 Due to pandemic COVID 19 situation, the corporation was not able to declare the dividends to its shareholders. To overcome this problem, the corporation decided to split its equity shares on a 3-for-1 basis. Prepare equity stockholder's account (before the split and after the split of equity shares) containing the total Paid - up - capital, retained Earnings, total shareholders' equity, outstanding shares and Par value per share

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