Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Fitzgerald Pharmaceutical IndustriesSelected Balance Sheet InformationJune 30, 2020 Long-term debt 00Notes payable, 10% $ 1,000,000 008% convertible bonds payable 5,000,000 0010% bonds payable 6,000,000 0000Total long-term debt $12,000,000 Shareholders' equity 00Preferred stock, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding $ 1,250,000 00Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 00Additional paid-in capital 4,000,000 00Retained earnings 6,000,000 0000Total shareholders' equity $12,250,000 The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2019, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share. 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. 3. The preferred stock was issued in 2019. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. 5. The 1,000,000 shares of common stock were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1,500,000, and the average income tax rate is 20%. Instructions For the fiscal year ended June 30, 2020, calculate the following for Fitzgerald Pharmaceutical Industries. a. Basic earnings per share. b. Diluted earnings per share.

Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Fitzgerald Pharmaceutical IndustriesSelected Balance Sheet InformationJune 30, 2020 Long-term debt 00Notes payable, 10% $ 1,000,000 008% convertible bonds payable 5,000,000 0010% bonds payable 6,000,000 0000Total long-term debt $12,000,000 Shareholders' equity 00Preferred stock, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding $ 1,250,000 00Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 00Additional paid-in capital 4,000,000 00Retained earnings 6,000,000 0000Total shareholders' equity $12,250,000 The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2019, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share. 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. 3. The preferred stock was issued in 2019. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. 5. The 1,000,000 shares of common stock were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1,500,000, and the average income tax rate is 20%. Instructions For the fiscal year ended June 30, 2020, calculate the following for Fitzgerald Pharmaceutical Industries. a. Basic earnings per share. b. Diluted earnings per share.

Name: Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a publi
Uploaded: 2022-11-04T13:36:16.000Z
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Description: Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected finan

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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Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020
Long-term debt
00Notes payable, 10%	$ 1,000,000
008% convertible bonds payable	5,000,000
0010% bonds payable	6,000,000
0000Total long-term debt	$12,000,000
Shareholders' equity
00Preferred stock, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding	$ 1,250,000
00Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding	1,000,000
00Additional paid-in capital	4,000,000
00Retained earnings	6,000,000
0000Total shareholders' equity	$12,250,000

Instructions

For the fiscal year ended June 30, 2020, calculate the following for Fitzgerald Pharmaceutical Industries.

a. Basic earnings per share.

b. Diluted earnings per share.

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