Question 1: (40 marks) The following information is extracted from SS Co.'s Statement of Financial Position at the end of year 3 since its business operation on 1 Jan 2017. $000 6,000 3,000 Stockholders' equity: Share capital - 9% Cumulative preference shares, $100 par (80,000 authorized) Share capital - ordinary shares, no par (4,000,000 authorized, 3,000,000 issued) Share premium Retained earnings Total equity 120,000 9,000 138,000 REQUIRED: a. SS Co. issued the preference shares on 1 Jan 2017. Calculate the number of preference shares issued. (2 marks) b. SS Co. issued 1,500,000 ordinary shares on 1 Jan 2017. There were 2,000,000 ordinary shares issued by year end. With net profit of $875,000, calculate the earnings per share for ordinary shares for 2017. (5 marks) C.SS Co. did not declare any dividend in the first two years. At year ended 31 December of year 3, SS Co. paid total cash dividends of $2,850,000. Compute the dividend paid per share during the third year for each of the two classes of stock. (9 marks) d. Prepare journal entries for following transactions occurred during the fourth year: (15 marks) i.) On 1 January, SS Co. repurchased 50,000 ordinary shares at $80 per share. ii) On 1 July, SS Co. reissued 30,000 shares at $50 per share. iii) On 1 October, Issued 50,000 ordinary shares at $90 each e. What is the number of ordinary shares issued and outstanding after item(d)? (5 marks) f. Assuming you are potential investor of SS Co., name two reasons why you would invest in the company in the form of preference share instead of ordinary share? (4 marks)