GHJ, a listed entity, has 1,000,000 ordinary shares inissue throughout 2019.The profits after tax for the period total N$800,000. Theentity has two convertiblefinancial instruments in issue:N$500,000 10% loan stock, each N$1,000 of stockhaving the right to convert into 2,000 ordinary shares.400,000 convertible N$1 non-equity shares, paying adividend of 10 cents per share. Each preference share isconvertible to 2 ordinary shares.RequirementCalculate the basic and diluted earnings per share for GHJassuming a tax rate of 30%.(b) ACD, another listed entity, has earnings per share in2018 of 25 cents per share. ACD has 4,000,000 ordinaryshares in issue throughout 2018. In 2019 1,500,000ordinary shares were issued by way of a capitalisation(bonus) issue.N$1,200,000.RequirementCalculate the EPS for 2019 and the restated eps for 2018that will be included in the 2019 financial statements.The profits after tax for the year were

Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Answered: GHJ, a listed entity, has 1,000,000…

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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Wild Cat Corporation has a $1,000,000 debt issue that is convertible into 10,000 prdinary shares Interest expense on the liability component of this convertible bond is $60,000. Net income for the year is $210,000, the weighted average number of ordinary shares outstanding is 100,000 shares, and the tax rate is 40 percent. In this case assumed conversion of the debt into ordinary shares at the beginning of the year. Requirement. a. Calculate Basic EPS b. Calculate Diluted EPS
Perseverance Company received dividends from its investments in ordinary shares during the year 2019 as follows: A share dividend of 20,000 shares from A Company when the market price of A’s shares was P30 per share. A cash dividend of P2,000,000 from B Company in which Perseverance owns a 20% interest. A cash dividend of P1,500,000 from C Company in which Perseverance owns a 10% interest. 10,000 ordinary shares of D Company in lieu of cash dividend of P20 per share. The market price of D Company’s shares was P180. Perseverance holds originally 100,000 ordinary shares of D Company. Perseverance owns 5% interest in D Company. A liquidating dividend of P2,000,000 from E Company. Perseverance owns a 5% interest in E Company. A dividend in kind of one ordinary share of X Company for every 5 ordinary shares of F Company held. Perseverance holds 200,000 F Company shares which have a market price of P50 per share. The market price of X Company’s ordinary share is P30 per share.…
Lilac Company has 200,000 shares of ordinary shares outstanding on January 1, 2021. On March 31, 2021, 100,000 additional ordinary shares. On June 30, the company issued 10%, 100,000 convertible preference share par value of P20. The preference shares are convertible into 200,000 shares of ordinary shares. On December 31, 2021, Lilac Company reported a net income of P1,140,000 after tax and paid dividends of P300,000 to ordinary and P100,000 to preference shareholders. What is the diluted earnings per share? Group of answer choices 3.42 3.51 3.24 3.04
Carla Vista Corporation had net income of $42,000 for the year ended December 31, 2023, and weighted average number of common shares outstanding of 10,000. The following information is provided regarding the capital structure: 1. 2. (a1) (a2) 8% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 35%. The bonds were issued at par ($1,150 per bond). No bonds were converted during the year. 3% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media
Eastern Corporation began operations on January 1st, 2020. The company reported the following information on its balance sheet as of December 31st, 2020: Liabilities Convertible bonds payable, $7,500,000, 5%, matures on Dec 31, 2025: $7,184,073 (See Note 1 below) Equity Common shares (unlimited authorized, 9,000,000 issued and outstanding). $18,000,000 Class A Preferred shares, cumulative $7 annual dividend, convertible to common shares at 4 common shares for each preferred share (400,000 authorized, 80,000 issued and outstanding) $3,000,000 Class B Preferred shares, non-cumulative $15 annual dividend, convertible to common shares at 2 common shares for each preferred share (4,000,000 authorized, 100,000 issued and outstanding) $750,000 Contributed surplus, common stock warrants for the purchase of common shares for $12 per share at any date before December 31st,…
Part of the Financial Position of Candy Inc. as of Dec. 31, 2019 shows the following: Accounts Payable Bonds payable Ordinary Share Capital par) 8% Preference Share Capital (P200 par) 10% Preference Share Capital(P200 par) Р 56,000 500,000 550,000 (P100 300,000 200,000 25,000 50,000 70,000 230,000 (21,000) P 1,960,000 Share Premium – ordinary Share Premium – Preference Appropriations reserve Accumulated Profits Treasury shares - ordinary (P105/sh) Total Equities Dividends are in arrears for two years. The 10% preference share capital is cumulative while the 8% preference share capital is participating up to 12%. If Candy Inc. is liquidated, how much would be received by Mr. Gwapo who holds 500 ordinary shares and 100 shares of 10% preference shares?
On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September 1, 2020, an additional 150,000 shares of ordinary shares were issued. In addition, VENUS Company had P 10,000,000 of 6% convertible bonds outstanding at December 31, 2019 which are convertible into 300,000 shares of ordinary shares. The carrying value of the bonds as of December 31, 2019 and based on a rate of 8% is P 9,205,800. No bonds were converted into ordinary shares in 2020. The net income for the year ended December 31, 2020 was P3,750,000. Using 30% income tax rate, how much should be the diluted EPS to be presented by VENUS Company for the year ended December 31, 2020?
Buffalo Ltd. issues 8,700, $5 cumulative preferred shares at $62 each and 15,000 common shares at $30 each at the beginning of 2019. Each preferred share is convertible into two common shares. The appropriate preferred share dividend was declared and paid in 2019. During the years 2020 and 2021, the following transactions affected Buffalo's shareholders' equity accounts: 2020 Jan. 10 Paid $11,000 of annual dividends to preferred shareholders. 2021 Jan. 10 Paid annual dividend to preferred shareholders and a $3,400 dividend to common shareholders. Mar. 1 The preferred shares were converted into common shares. Journalize each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020Jan . 10 (To record preferred…
The information below pertains to Windsor Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock 4 a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at $20 per share. eTextbook and Media 1.65 $ $1,210,00 1,970,00 4,200,00 5,820,00 20% $25 per shar ▶
Information from the financial statemets of Henderson-Niles Industries included the following at December 31, 2021: 12 Comnon shares outstanding throughout the year Convertible preferred shares (convertible into 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) 100 million 60 million $900 million Henderson-Niles's net income for the year ended December 31, 2021, is $520 million. The income tax rate is 25%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2021. 01:54:48 Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answers to 2 decimal places.) Numerator Denominator Earnings per share Basic Diluted I ||| |
On January 01, 2021, EFG Company had 100,000 P50 par value ordinary shares outstanding. In addition, on January 01, 2021, the entity had issued 15,000 convertible cumulative 10% preference shares with P100 par value. These preference shares were converted on August 01, 2021. Each preference share was converted into 4 ordinary shares. The preference dividends for the entire year were paid in full before conversion. The entity had no other potentially dilutive securities. Net income for the year was P6,400,000. Diluted EPS a. 51.20b. 39.06c. 40d. 50e. 62.50
On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September 1, 2020, an additional 150,000 shares of ordinary shares were issued. In addition, VENUS Company had P 10,000,000 of 6% convertible bonds outstanding at December 31, 2019 which are convertible into 300,000 shares of ordinary shares. The carrying value of the bonds as of December 31,2019 and based on a rate of 8% is P 9,205,800. No bonds were converted into ordinary shares in 2020. The net income for the year ended December 31, 2020 was P3,750,000.Using 30% income tax rate, how much should be the diluted EPS to be presented by VENUS Company for the year ended December 31, 2020? (use 2 decimal places)

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