Question #$3$: Splits Unlimited $[12$ Marks$](18$ Minutes$)$

SCENARIO A

On January $1,2023,$ Splits Unlimited $($SL$)$ had $20,000$ shares outstanding for $$36,000$ and a contributed surplus amount of $$2,400$ on its balance sheet. On May ${30}^{th},$ SL issued $3,000$ shares for $$2\mathrm{.}20$ per share. On November $1^{st},2023,$ SL purchased and retired $2,700$ shares paying $$2\mathrm{.}50$ per share.

Required:

Prepare all journal entries for $2023.$

SCENARIO B

On January $1,2023,$ LS Limited $($LS$)$ had $250,000$ common shares outstanding and $50,000,$ $$3$ cumulative preferred shares outstanding. The preferred share dividends are two years in arrears. No dividends have been declared this year.

On March $1,$ LS issued $60,000$ common shares.

On August $1^{st},$ LS declared a $3$ for $1$ stock split effective August $1^{st}.$

On December ${31}^{st},$ net income for LS was $$1,240,000.$

Required:

Calculate earnings per share for the year. Show all relevant work.