Question
Section Three: (27 marks) On 1/5/2021, Al-Saada Company obtained approval from the Securities Commission giving it the right to issue 100,000 preferred shares with a
Section Three: (27 marks) On 1/5/2021, Al-Saada Company obtained approval from the Securities Commission giving it the right to issue 100,000 preferred shares with a nominal value of 10 dinars per share (8% - combined and non-participating profits), and 200,000 ordinary shares with a par value of 5 dinars per share. Then, during the current year and the following year, the following transactions were completed: On 15/1/2021, 50,000 ordinary shares were issued for trading at a price of 8 dinars per share. - On 30/1/2021, it issued 15,000 premium shares to Royal Company in exchange for acquiring (purchasing) the following assets: Equipment with a fair value of 30,000 dinars, buildings with a fair value of 80,000 dinars and land with a fair value of 90,000 dinars. - On May 12, 2021 it bought 10,000 of its common stock at a price of 6 dinars per share (use the cost method) - On 06/18/2021 it sold 10,000 treasury shares at a price of 8 dinars per share. - On 31/12/2021, dividends were announced for preferred shares, as well as cash dividends amounting to 0.25 dinars per share of ordinary shares. - On 12/31/2021 its business activities were concluded and an income summary was prepared, and the net income represented 182,500 dinars. - On 1/3/2022, the company issued 10,000 ordinary shares and 4,000 preferred shares, and they were sold in one deal with a value of 120,000 dinars. Note that the market value of common shares and preferred shares on that date is 8 dinars per common share and 12 dinars per preferred share. Required: 1. Preparing the daily entries for the above operations that took place in Al-Saada Company for the year 2021. 2. Preparing the equity side of the budget statement for Al-Saada Company for the year 2021. 3. Preparing the daily entries for the above operations that took place in Al-Saada Company for the year 2022
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