SECTION B: Problem Solving Question 6 You are given the information below to answer questions that follow: a) Barakat PLC started Year 2018 with AED1,000,000 in retained earnings from Dec 31, 2017. b) Barakat PLC has 500,000 of authorized Shares of Common Stock AED10 Par Value c) Barakat PLC issued 250,000 Shares of Common Stock for AED20.00 during 2018 d) Barakat PLC has 100,000 authorized AEDS Preferred Stock AED15.00 Par Value e) Barakat PLC has 50,000 issued Preferred Stock at AED30.00 1) Barakat PLC generated AED 2,000,000 Net Income during the Year-2018. g) On December 30, 2018, Barakat PLC paid a dividend of AED4.00 per share of Common Stock. Required a) Use the information above to calculate the retained Earnings for the Year Ended December 2018 15 Marks) b) Use the information above to calculate the Shareholders' Equity Statement as at 31" December 2018 [10 Marks] a. Answer: Retained Earnings Barakat PLC Statement of Changes in Retained Earnings For The Year Ended Dec 31, 2018 Marks Retained Earnings from 31" Dec 2017 AED 1,000,000 1 Mark Add: Net Income 2,000,000 1 Mark AED3,000,000 Less: Dividends: (a) Colomon Dividend: 250,000 x AED4 - AED 1,000,000 1 Mark (b) Preferred Dividend - 50,000 x AEDS - AED250,000 (AEDI.250.000 I Mark Retained Earnings on 31" December 2012 AED1,750,000 1 Mark [1 x 5 - 5 Marks/ b. Answer: Shareholders' Equity Statement