Camiguin Company reported the following information at year-end: Ordinary share capital Convertible noncumulative preference share capital 10% convertible bonds payable 110,000 shares 20,000 shares P2,000,000 Share options to purchase 60,000 shares at P15 were outstanding. Market price of share was P25 at yer-end and averaged P20 during the year. The entity paid the annual dividend of P5 on the preference share. The preference shares are convertible into 40,000 ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for the current year was P650,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share

Camiguin Company reported the following information at year-end: Ordinary share capital Convertible noncumulative preference share capital 10% convertible bonds payable 110,000 shares 20,000 shares P2,000,000 Share options to purchase 60,000 shares at P15 were outstanding. Market price of share was P25 at yer-end and averaged P20 during the year. The entity paid the annual dividend of P5 on the preference share. The preference shares are convertible into 40,000 ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for the current year was P650,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share

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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REQUIREMENTS: 1. Interpolation method using multiplies of 1% 2. Yield-to-maturity formula
Style Company reported the following information on December 31, 2021: Ordinary share capital 110,000 sharesConvertible noncumulative preference share capital 20,000 shares10% convertible bonds payable P2,000,000 Share options to purchase 60,000 shares at P15 were outstanding. Market price of ordinary share was P22 on December 31, 2021 and average P20 during the year. No value was assigned to the share options. The entity paid preference dividends of P5 per share. The preference share is convertible into 40,000 ordinary shares. The 10% bonds are convertible into 30,000 ordinary shares. The net income for 2021 is P650,000. The tax rate is 30%. Required: 18. Compute the amount that should be reported as basic earnings per share for 2021.19. Compute the total number of potential ordinary shares.20. Compute the amount that should be reported as…
The entity received P4,500,000 cash from the issuance of its 9%, 10-year P5,000,000 par value preference shares. How much is the cost of the preference shares using the following methods? 1. Yield-to-maturity formula 2. Interpolation method using multiplies of 1%
ZZZ Company had the following share capital at the end of the current year: Preference share capital, P100 par, 30,000 shares 3,000,000 Ordinary share capital, P50 par, 100,000 shares 5,000,000 Net income for the year 2,600,000 The preference dividend rate is 8% and the preference share is nonconvertible but cumulative and fully participating. After the ordinary share has been paid a dividend of P10 per share, the preference share shall participate in any additional dividend on a prorate basis with the ordinary share. Questions: 1. Compute for the basic earnings per ordinary share. 2. Compute for the basic earnings per preference share.
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Petrock Company provided the following information at year-end: 2020 2021 Ordinary share capital Convertible preference share capital 10,000 shares 90,000 shares 90,000 shares 10,000 shares During 2021, the entity paid dividends of P10 per ordinary share and P24 per preference share. · The preference share capital is convertible into 20,000 ordinary shares. The net income for 2021 was P2,850,000. Required: 1. Basic earnings per share 2. Diluted earnings per share
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