e Financial controller at T
The Financial controller at Think Inc. is currently preparing the calculation for earnings per share and the related disclosure for the firm's financial statements. The following information has been extracted from the firm's financial statements for the fiscal year ended June 30, 2021.
* Share capital - preference, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shared issued and outstanding $1,250,000
* Share capital - ordinary, $1 par, 10,000 shares authorised, 1,000,000 shares issued outstanding $1,000,000
* Share premium - ordinary (includes any amounts for options and conversations) - $4,000,000
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* Notes payable, 10% - $1,000,000
* Convertible bonds payable - $5,000,000
* 10% bonds payable - $6,000,000
The following transactions have also occurred at Think.
Options were granted on July 1, 2020, to purchase 200,000 shares at $15 per share. Although no options were exercised during the fiscal year 2021, the average price per ordinary share during the fiscal year 2021 was $20 per share.
Each bond was issued at face value. The convertible bonds will convert into ordinary shares at 50 shares per 1,000 bond. It is exercisable after 5 years and it was issued in 2019. The interest on the liability component of the convertible bonds payable for the fiscal year ending June 30, 2021, was $450,000.
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