Reference no: EM132524840

Question - On January1, 2018 Covid Company has 900,000 ordinary share of $1 par and 250,000 share of $40 par value with 8% cummulative preference shares. On May 1, 2018 Covid Company issued another 300,000 ordinary share with $1 par value. Then on Oct 1, 2018 the company buy its own share for 200,000 share and hold it as treasury share. Net Income for 2018 is $4,000,000. Covid Company did not declare cash devidend. It has $800,000 unpaid devidend in arrear for 2018. The company also reported $500,000 gain on discontinued operation (net tax) $500,000. On Feb10, 2019 the company will pay all the deviden for preferred shareholder and give 10% share devidend to ordinary share holder

Required -

1. If the company will issued the financial statement on March 2019, compute how much is the weighted average ordinary share outstanding?

2. If the company will issued the financial statement on March 2019, computer how much is the EPS.

3. Prepare the portion of income statement starting showing how to fulfil the reporting standard required by IFRS.