CH Holdings Inc has net earnings of $5,456,000 for the year ended 31 December 20X5. It has convertible bonds currentlyoutstanding with a face value of $8,500,000 and a book value of $7,871,852 at 1 January, 20X5. The bonds have a coupon interest of2.5% payable semi-annually on 30 June and 31 December. The effective interest rate on similar bonds with no conversion option at thetime of issue was 6.5%. The bonds have a conversion price of $40 per share. The weighted average number of shares outstanding forthe year was 1,500,000, CH's income tax rate is 28%.Required:Compute the basic and diluted EPS for CH Holdings Inc. (Do not round intermediate calculations and round your answer to 2decimal places.)Basic EPSDiuted EPS

computing basic and diluted EPS Basic EPS= ($5456000) /$1500000 Basic EPS=$ 3.637 per Share Dilute…

CH Holdings Inc has net earnings of $5,456,000 for the year ended 31.December 20X5. It has convertible bonds currently utstanding with a face value of $8,500,000 and a book value of $7,871,852 at 1 January, 20X5. The bonds have a coupon interest of 5% payable semi-annually on 30 June and 31 December. The effective interest rate on similar bonds with no conversion option at the ime of issue was 6.5%. The bonds have a conversion price of $40 per share. The weighted average number of shares outstanding for he year was 1,500,000. CH's income tax rate is 28%. Required: Compute the basic and diluted EPS for CH Holdings Inc. (Do not round intermediate calculations and round your answer to 2 decimal places.) Basic EPS

CH Holdings Inc has net earnings of $5,456,000 for the year ended 31.December 20X5. It has convertible bonds currently utstanding with a face value of $8,500,000 and a book value of $7,871,852 at 1 January, 20X5. The bonds have a coupon interest of 5% payable semi-annually on 30 June and 31 December. The effective interest rate on similar bonds with no conversion option at the ime of issue was 6.5%. The bonds have a conversion price of $40 per share. The weighted average number of shares outstanding for he year was 1,500,000. CH's income tax rate is 28%. Required: Compute the basic and diluted EPS for CH Holdings Inc. (Do not round intermediate calculations and round your answer to 2 decimal places.) Basic EPS

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2022, a company issued $400,900 of 10-year, 12% coupon rate bonds. The interest is peyable semi-annually on June 30 and December 31. The issue price was $450.861 based on a 10% market interest rate. The effective interest method of amortization is used What is the book value of the bond liability as of June 30, 2022 (to the nearest dollar)? Multiple Choice O O O O $400.900 $452,372 $449350 $402,411
On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial asset at amortized cost with a 10% yield rate. The bonds mature at an annual installment of P1,000,000 every December 31. What is the present value of theserial bonds on January 1, 2014? (Round off the PV factor to two decimal places only)a. P3,106,800b. P3,060,000c. P3,045,000d. P3,149,400
Munabhai
I dont understand this homwork Bringham Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. Compute the price of the bonds as of their issue date.2. Prepare the journal entry to record the bonds’ issuance.
JMN Corporation issued bonds on January 1, 2006. The bonds have a coupon rate of 5.0%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2021 (15 years). What was the yield to maturity on January 1, 2006, if the market price of the bond on that date was $1000? O 4.5% O 5.0% O 5.25% O 5.5%.
NoleCo issues bonds on January 1, 20X1. The bonds mature ten years from this date and pay interest semi-annually on June 30 and December 31 each year. The face value of the bonds is $500,000 and the coupon/stated rate is 6%. The market rate on the issue date is 5%. The bonds were issued for $538,973 The carrying value of these bonds on December 31, 20X1 (after the interest payment on that date) is: $533,248 $536,591 $541,265 $500,000 $535,883
2. On January 1, 2020, Dawson Inc. issued bonds with a face value of $400,000 and coupon interest rate of 5%. The bonds pay interest semi-annually on July 1 and January 1. The market rate at January 1, 2020 is 4%. (a) Are the bonds being issued at a premium or a discount? (b) Prepare the journal entry for the issue, assuming the bonds are issued at 101.4. (No explanation required.) (c) Record the entry for the first interest payment at July 1, 2020. (No explanation required.)
NoleCo issues bonds on January 1, 20X1. The bonds mature ten years from this date and pay interest semi-annually on June 30 and December 31 each year. The face value of the bonds is $800,000 and the coupon/stated rate is 10%. The market rate on the issue date is 11%. The bonds were issued for $752,198.Required: Complete the three parts below.Part A: The interest expense that NoleCo should recognize on June 30, 20X1 is:$40,000$44,000$37,610$42,112$41,371Part B: The interest expense that NoleCo should recognize on December 31, 20X1 is:$41,295$41,446$40,000$42,206$44,000Part C: The carrying value of these bonds on December 31, 20X1 (after the interest payment on that date) is:$800,000$753,569$755,015$752,198$756,516
Godo
warded Denzel Corporation is planning to issue bonds with a face value of $630,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet?
On January 1, 2022, P Corp. issued eight-year, 3% bonds with a face value of $400,000, with interest payable semi- annually on June 30 and December 31. The bonds were sold to yield 4%. Table values are: Present value of 1 for 8 periods at 3% .789 Present value of 1 for 8 periods at 4% 731 Present value of 1 for 16 periods at 1.5% 788 Present value of 1 for 16 periods at 2% .728 Present value of annuity for 8 periods at 3% Present value of annuity for 8 periods at 2% 7.020 7.325 Present value of annuity for 16 periods at 1.5% 14.131 Present value of annuity for 16 periods at 2% 13.578 What is the issue price of the bond?
Park Corporation is planning to issue bonds with a face value of $2,800,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective - interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1, PV of S1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year 3. What bonds payable amount will Park report on its June 30 balance sheet?