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16. On December 31, 2015 and 2014, DLE Company had 100000 ondinary shares and 10.00 cumulative preference shares of S%. PIOD par value. No dividends were decland on either the preference or ordinary share in 2015 or 2014. Net ncome for the cument year was PO00. What amount should be reported as basic camings per share? e.9.00 d. 5.00 9.50

16. On December 31, 2015 and 2014, DLE Company had 100000 ondinary shares and 10.00 cumulative preference shares of S%. PIOD par value. No dividends were decland on either the preference or ordinary share in 2015 or 2014. Net ncome for the cument year was PO00. What amount should be reported as basic camings per share? e.9.00 d. 5.00 9.50

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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23. What is the compensation expense for 2019? a. S00,000 b. 250,000 c. 750,000 d. 450,000 24. What is the compensation expense for 2020? a. 880,000 b. 380,000 c. 440,000 d. 500,000 25. Wlat is tle cumpeusation expense fur 2021? a. 600,000 b. 880,000 c. 380,000 d. 470,000 26. What amount was credited to share premium when the options were exercised on December 31, 2021? a 2,250,000 b. 2,350,000 c. 900,000 d. 0 27. An entity provided the following equity balances at year-end: 10% preference share capital, 30,000 shares, par P100 Ordinary share capital, 50,000 shares, par 100 Share premium Retained earnings 3,000,000 5,000,000 1,000,000 2,000,000 The preference shares have a call price ofl 20, a liquidation price of 115 and dividends huve not been paid for 3 years. What is the book value per preference share? a. 125 b. 130 e. 145 d. 110 28. An entity provided the following shareholders'equity at year-end: 10% cumulative preference share capital, PI00 par, 30,000 shares Ordinary share capital, PI00 par value, 50,000 shares Retained eamings 3,000,000 5,000,000 4,000,000 Dividends in arrears on the preference shares are for 5 years. If the entity were to be liquidated, the preference share would receive par plus a premium of P300,000. What is the book value per ordinary share? a. 144 h 134 b. 174 d. 150 29. An entity provided the following shareholders' equity at year-end: Ordinary share capital, P100 par, 72,000 shares Subscribed ordinary share capital, 12,000 shares Subscription receivable Treasury shares, 4,000 at cost Retained eamings 7,200,000 1,200,000 400,000 600,000 2,000,000 What is the book value per ordinary share? e. 100.00 d. 130.00 a 12250 b. 117.50 30. Adverse financial and operating circumstances warrant that an entity should undergo a quasi-reorganization at year-cnd. "Inventory with a fair value of PI,000,000 is curremly recorded in the accounts at cost of PI,500,000. "Plant assets with a fair value of P3,000,000 are currently recorded at P4,000,000 net of accumulatod depreciation. *Unrecorded accounts payable amount to P300,000, "Individual shareholders contribute P1,S00,000 to create additional paid-in capital to facilitate the reorganization. No new slares are issued to the shareholders. "The par value of the share capital is reduced from P100 to P50. *Immediately before these events, the entity reported the following shareholders' equity: Share capital, PI00 par value, 50.000 shares Share premium Retained eamings (deficit) 5,000,000 500,000 (2.000,000) After the quasi-eorganization, what is the total sharebolders' equity? a. 3,200,000 b. 2,500,000 c. 1,700,000 d. 1,000,000
Transcribed Image Text:23. What is the compensation expense for 2019? a. S00,000 b. 250,000 c. 750,000 d. 450,000 24. What is the compensation expense for 2020? a. 880,000 b. 380,000 c. 440,000 d. 500,000 25. Wlat is tle cumpeusation expense fur 2021? a. 600,000 b. 880,000 c. 380,000 d. 470,000 26. What amount was credited to share premium when the options were exercised on December 31, 2021? a 2,250,000 b. 2,350,000 c. 900,000 d. 0 27. An entity provided the following equity balances at year-end: 10% preference share capital, 30,000 shares, par P100 Ordinary share capital, 50,000 shares, par 100 Share premium Retained earnings 3,000,000 5,000,000 1,000,000 2,000,000 The preference shares have a call price ofl 20, a liquidation price of 115 and dividends huve not been paid for 3 years. What is the book value per preference share? a. 125 b. 130 e. 145 d. 110 28. An entity provided the following shareholders'equity at year-end: 10% cumulative preference share capital, PI00 par, 30,000 shares Ordinary share capital, PI00 par value, 50,000 shares Retained eamings 3,000,000 5,000,000 4,000,000 Dividends in arrears on the preference shares are for 5 years. If the entity were to be liquidated, the preference share would receive par plus a premium of P300,000. What is the book value per ordinary share? a. 144 h 134 b. 174 d. 150 29. An entity provided the following shareholders' equity at year-end: Ordinary share capital, P100 par, 72,000 shares Subscribed ordinary share capital, 12,000 shares Subscription receivable Treasury shares, 4,000 at cost Retained eamings 7,200,000 1,200,000 400,000 600,000 2,000,000 What is the book value per ordinary share? e. 100.00 d. 130.00 a 12250 b. 117.50 30. Adverse financial and operating circumstances warrant that an entity should undergo a quasi-reorganization at year-cnd. "Inventory with a fair value of PI,000,000 is curremly recorded in the accounts at cost of PI,500,000. "Plant assets with a fair value of P3,000,000 are currently recorded at P4,000,000 net of accumulatod depreciation. *Unrecorded accounts payable amount to P300,000, "Individual shareholders contribute P1,S00,000 to create additional paid-in capital to facilitate the reorganization. No new slares are issued to the shareholders. "The par value of the share capital is reduced from P100 to P50. *Immediately before these events, the entity reported the following shareholders' equity: Share capital, PI00 par value, 50.000 shares Share premium Retained eamings (deficit) 5,000,000 500,000 (2.000,000) After the quasi-eorganization, what is the total sharebolders' equity? a. 3,200,000 b. 2,500,000 c. 1,700,000 d. 1,000,000
16. On December 31, 2015 and 2014, DLE Company had 100,000 ondinary shares and 10,000 cumulative preference shares of 5%. PI0 par value. No dividends were declaed on either the peeference or ordinary share in 2015 or 2014, Net income for the cument year was P900,000. What amourt shoukd be reported as basic camings per share? e. 9.00 d. 5.00 a 8.50 b. 9.50 17, Silver Company reported the folkowing capital structure on Jamuary 1, 2015: Ordinary share capital Preferemce share capital Shares issued and outstanding 200,000 S0,000 On October 1, 2015, the entity issued a 10% snck dividend on ontinary shares, and paid the annual cash dividend of 200,000 on preference shares. The preference shares are ncncumulative, nosparticipating and nonconvertible. Net income for the year ended December 31, 20IS was PI.920,000, Wlat amount should be repoted as lusic earnings per share? a 820 b. 8.72 c. 9.36 d. 7.82 18. Domino Company had a profit afier tax of P15.000.,000 for 2015. The following appropriations luve not been considered in this amount: Arean of cumilative preference dividend for 2 years Ordinary dividends Preference share premium payahle on redemption Exceptional peufit, et of tax 4.000,000 5,000.000 1,000.000 4,000.000 The entity had 3,000,000 ondinary shares of PI par value outstanding on Jamuary 1. 2015. The following share transactions occurred during the current year: Isued a PS per share, Pl paid to date and entitled to participate in dividenads to the extent paid up Full market price P3 per share issue Purchase of own shares at P3.50 per share Jan 250000 April I July 1 600,000 40000 What amount should be reported as basic eamings per share? e. 3.64 a 485 b. 4.57 d. 3.94 19. Damen Company had 60,000 ondinary shares outstanding on lanuary 1, issued 12000 shures on May 1, purchased 0,000 treasury shares on September 1, and issued 90,000 shares on November 1. What is the weighted average number of shares outstanding for the year? C. 660.000 d. 810,000 a 675,000 b. 750.000 20. ABC Company had 200,000 ordinary shares of P20 par value and 20000 shares of PI00 par, 6% cumulative, convertible preference share capital outstunding for the emire year ended December 31, 2015. Each preference share is convertible no 5 ondinary stares. The nd income for 2015 was PS40.000, What amount should be repornad as diluted earnings er share a 2.40 b. 2.80 e. 3.60 d. 4.20 liems 21 and 22 are based on the Following Information Fonunato Company had 200000 ondinary shares cutstunding on lamuary 1. 2015. On Janary 1. 2015, the ensity lad iksaed 4,000 comverible 10% honds with P1,000 face value. The bonds were converted on October 1, 2015 and 40 endinary shares were issued in exchange for cach bond. Net income was PS,O0. The income tax rate is 30%, 21. What is the amount of basic camings per share? e. 20.83 d. 15.62 a 25.000 b. 13.80 22. What is the amount of dilutal eamings per share? a 14.47 b. 21.65 e 14.72 d. 14.61 Items 23 to 26 ae baed on the Following Iaformation: On January 1, 2019. an emity granted 100 share options each to S00 employees, conditional upon te employee's emaining in the entity's employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is PI00 and the option price is P120. On December 31. 2020. 30 cmployees have left and it is expected that on the hasis of a weighted average penbability. a futher 30 employees will kave before the end of the three -year period. On December 31, 2021, only 20 employees atually left and all of the shae options are exercied on sach dale. 23. What is the compensation expense for 2019? a. S00,000 b. 250,000 c. 750.000 d 450,000
Transcribed Image Text:16. On December 31, 2015 and 2014, DLE Company had 100,000 ondinary shares and 10,000 cumulative preference shares of 5%. PI0 par value. No dividends were declaed on either the peeference or ordinary share in 2015 or 2014, Net income for the cument year was P900,000. What amourt shoukd be reported as basic camings per share? e. 9.00 d. 5.00 a 8.50 b. 9.50 17, Silver Company reported the folkowing capital structure on Jamuary 1, 2015: Ordinary share capital Preferemce share capital Shares issued and outstanding 200,000 S0,000 On October 1, 2015, the entity issued a 10% snck dividend on ontinary shares, and paid the annual cash dividend of 200,000 on preference shares. The preference shares are ncncumulative, nosparticipating and nonconvertible. Net income for the year ended December 31, 20IS was PI.920,000, Wlat amount should be repoted as lusic earnings per share? a 820 b. 8.72 c. 9.36 d. 7.82 18. Domino Company had a profit afier tax of P15.000.,000 for 2015. The following appropriations luve not been considered in this amount: Arean of cumilative preference dividend for 2 years Ordinary dividends Preference share premium payahle on redemption Exceptional peufit, et of tax 4.000,000 5,000.000 1,000.000 4,000.000 The entity had 3,000,000 ondinary shares of PI par value outstanding on Jamuary 1. 2015. The following share transactions occurred during the current year: Isued a PS per share, Pl paid to date and entitled to participate in dividenads to the extent paid up Full market price P3 per share issue Purchase of own shares at P3.50 per share Jan 250000 April I July 1 600,000 40000 What amount should be reported as basic eamings per share? e. 3.64 a 485 b. 4.57 d. 3.94 19. Damen Company had 60,000 ondinary shares outstanding on lanuary 1, issued 12000 shures on May 1, purchased 0,000 treasury shares on September 1, and issued 90,000 shares on November 1. What is the weighted average number of shares outstanding for the year? C. 660.000 d. 810,000 a 675,000 b. 750.000 20. ABC Company had 200,000 ordinary shares of P20 par value and 20000 shares of PI00 par, 6% cumulative, convertible preference share capital outstunding for the emire year ended December 31, 2015. Each preference share is convertible no 5 ondinary stares. The nd income for 2015 was PS40.000, What amount should be repornad as diluted earnings er share a 2.40 b. 2.80 e. 3.60 d. 4.20 liems 21 and 22 are based on the Following Information Fonunato Company had 200000 ondinary shares cutstunding on lamuary 1. 2015. On Janary 1. 2015, the ensity lad iksaed 4,000 comverible 10% honds with P1,000 face value. The bonds were converted on October 1, 2015 and 40 endinary shares were issued in exchange for cach bond. Net income was PS,O0. The income tax rate is 30%, 21. What is the amount of basic camings per share? e. 20.83 d. 15.62 a 25.000 b. 13.80 22. What is the amount of dilutal eamings per share? a 14.47 b. 21.65 e 14.72 d. 14.61 Items 23 to 26 ae baed on the Following Iaformation: On January 1, 2019. an emity granted 100 share options each to S00 employees, conditional upon te employee's emaining in the entity's employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is PI00 and the option price is P120. On December 31. 2020. 30 cmployees have left and it is expected that on the hasis of a weighted average penbability. a futher 30 employees will kave before the end of the three -year period. On December 31, 2021, only 20 employees atually left and all of the shae options are exercied on sach dale. 23. What is the compensation expense for 2019? a. S00,000 b. 250,000 c. 750.000 d 450,000
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