26.Armstrong Co has produced the following net profit figures for the years ending 31 December.Sm20X1 1.220X2 0.620X3 2.1On 1 January 20X2 the number of shares outstanding was 600,000. During 20X2 the company announced a rights issue with thefollowing details.Rights: 1 new share for each 4 outstandingExercise price: $7.00Last date to exercise rights: 1 May 20X2The market (fair) value of one share in Armstrong immediately prior to exercise on 1 May 20X2Required:Calculate the (a) EPS restated for rights issue for 20X1, (b) EPS for 20X2 and (c) EPS for 20X3.Show your calculations otherwise the answer will not be considered.= $10.00.

Step 1: Calculate the Bonus Fraction The bonus fraction adjusts for the rights issue to reflect the…

Answered: 26. Armstrong Co has produced the…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 15.4CPP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...

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At 1 January 20X9, company X had in issue 10 million ordinary shares. On 30 April 20X9, company Xmade a 2 for 5 rights issue at £1.20 per share. At that date the share price (before the issue wasannounced) was £1.60 per share. The earnings of the company were £3m for 20X9.Calculate the basic EPS for 20X9.
BEPS - rights issue A company has 1,000,000 shares in issue at that start of the year. During the year, a rights issue of one new share for every four shares was made at a price of £5 per share. The pre-issue market price was £6.50 per share. The theoretical ex-rights price (TERP) is: Select one: O a. £5.00 b. £6.20 C. £5.30 O d. £6.00
At 1 Jul 20X4 a company’s capital and share premium account of a company were as follows:Ordinary share capital $75,000(300,000 shares of 25c each)Share premium account $200,000In the year ended 30 June 20X5 the following event took place: 1.On 1 January 20X5 the company made a rights issue of 1 share for every 5 held at $1.20 per share2.On 1 April 20X5 the company made a bonus issue of 1 share for every 3 in issue at that time, using the share premium account to do so. What are the correct balance on the company’s capital and share premium account at 30 June 20X5?Ordinary share capital Share premium accountA $120,000 $227,000B $120,000 $137,000C $460,000 $287,000D $480,000 $137,000
purchased for P120 per Problem 16-14 (AICPA trading. These 50,000 shares were rights to the investor. and two of these rights. Each share had a market value of P130 and each right had market value of P20 on the date of issue. a What total cost should be'recorded for the new shares that are acquired by exercising the rights? a. 2,250,000 b. 3,250,000 c. 3,050,000 d. 5,500,000
Assume the company earns $1.62 per share. What was the sale volume? 52 Weeks Stock (Sym) Jaymen Co. Volume (100's) 51,615 Net Change - 0.50 HI LO DIV YLD % PE Close 49.94 40.25 0.58 46.90 Sale volume
mc attached
The YZA Corporation has 100,000 ordinary shares authorized, par value P10. As of the end of reporting period, 60,000 of the shares are outstanding. Required: Compute the earnings per share assuming the company has a profit of: A. P10,000 B. P70,000 C. P90,000 D. P150,000 E. P180,000
. Journal entries using the Cost and Equity Method of accounting for the for the following transtation : On 1/2/18 the Xylo Corp. purchased 8000 shares of ABC Co. Common Stock At $20 per share. ABC Co. has 40000 shares of Common Stock outstanding. On 10/31/18 Xylo Corp. received a $1.50 per share dividend from ABC Co. On 12/30/18 ABC Company announced earnings of for the year at $200000. Prepare the calculations and Journal Entries, in good form, if the Investment is classified as Available for sale Part A. The Cost Method. Part B The Equity Method of accounting is applicable.
Using the following information for the year ended 30 June, prepare the Retained Earnings Account for Kramer Ltd. Retained earnings as at 1 July $450,000 Transfer from Dividend Equalisation Reserve $200,000 Operating Profit (before income tax expenses $270,000) $900,000 Create a provision for dividend of 15 cents per share. There are 7,500,000 shares issue
At the beginning ofcurrent year, Juan Company was organized with 100,000 authorized shares of P100 par value. The following transactions occurred during the year: January 15 Sold 30,000 shares at PI50 per share February 14 Issued 2,000 shares for legal services with a fair value of P250,000. The shares on this date are quoted at P140 per share 27 Purchased 5,000 treasury shares at a cost of P120 per March share October 31 Issued P5,000,000 convertible bonds at 120. The bonds are quoted at 98 without the conversion feature. November 5 Declared a 2-for-1 share split when the market value of the share was Pl160. December 15 Sold 20,000 shares at P75 per share. December 31 Net income for the year was P2,000,000. What is the total shareholders' equity at year-end?
how does it calculate the 500000 in 20x1 and 400000 in 20x0 in profit attribitable to ordinary sahreholders column?
The issued share capital of a company consists of 3,360,000 ordinary shares of £1 each. Half way through its financial year the company made a rights issue of 2 for 6 at an exercise price of £1.58 a share. The market value of the company's shares was £2.04 a share just before the rights issue.. The company reported a net profit after taxation for the year of £2,016,000. The market value of each ordinary share at the end of the year was £2.31. The theoretical ex-rights value per share is £1.93, and the adjustment factor is 1.059740. The weighted average number of shares issued for the year is 4,020,364. Calculate, correct to the nearest whole number, the earnings per share which would be reported in the company's income statement for the year.

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