Homework Help is Here – Start Your Trial Now!
Business
Accounting
In 2019, Cullumber Ltd. issued $42,000 of 9% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $76,000 and expenses of $42,800 for 2020, not including interest and taxes (assume a tax rate of 20%). Throughout 2020, 2,000 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.) (a) Your answer is correct. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) (b) Diluted earnings per share eTextbook and Media $ Diluted earnings per share Assume that the 42 bonds were issued on October 1, 2020 (rather than in 2019), and that none have been converted or redeemed. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) 4.28 $

In 2019, Cullumber Ltd. issued $42,000 of 9% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $76,000 and expenses of $42,800 for 2020, not including interest and taxes (assume a tax rate of 20%). Throughout 2020, 2,000 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.) (a) Your answer is correct. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) (b) Diluted earnings per share eTextbook and Media $ Diluted earnings per share Assume that the 42 bonds were issued on October 1, 2020 (rather than in 2019), and that none have been converted or redeemed. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) 4.28 $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please answer both the parts within 30 minutes.

In 2019, Cullumber Ltd. issued $42,000 of 9% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $76,000 and expenses of $42,800 for 2020, not including interest and taxes (assume a tax rate of 20%). Throughout 2020, 2,000 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.) (a) Your answer is correct. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share (b) eTextbook and Media $ Diluted earnings per share Assume that the 42 bonds were issued on October 1, 2020 (rather than in 2019), and that none have been converted or redeemed. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) 4.28 $
Transcribed Image Text:In 2019, Cullumber Ltd. issued $42,000 of 9% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $76,000 and expenses of $42,800 for 2020, not including interest and taxes (assume a tax rate of 20%). Throughout 2020, 2,000 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the convertible bonds' equity element is not recorded.) (a) Your answer is correct. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share (b) eTextbook and Media $ Diluted earnings per share Assume that the 42 bonds were issued on October 1, 2020 (rather than in 2019), and that none have been converted or redeemed. Calculate diluted earnings per share for the year ended December 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) 4.28 $
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS