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On January 1, Cee Company's ordinary share capital amounted to P1,000,000, with P10 par value. On April 1, 2019, the entity issued P5,000,000, 10% bonds with a face value of P1,000. The bonds were converted on October 1, 2019 and 20 ordinary shares were issued in exchange for each bond. Net income was P10,000,000. The income tax rate is 30%. Requirement: 1. What is the amount of basic earnings per share? 2. What is is the amount of diluted earnings per share?

On January 1, Cee Company's ordinary share capital amounted to P1,000,000, with P10 par value. On April 1, 2019, the entity issued P5,000,000, 10% bonds with a face value of P1,000. The bonds were converted on October 1, 2019 and 20 ordinary shares were issued in exchange for each bond. Net income was P10,000,000. The income tax rate is 30%. Requirement: 1. What is the amount of basic earnings per share? 2. What is is the amount of diluted earnings per share?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, Cee Company's ordinary share capital amounted to P1,000,000, with P10 par value. On April 1, 2019, the entity issued P5,000,000, 10% bonds with a face value of P1,000. The bonds were converted on October 1, 2019 and 20 ordinary shares were issued in exchange for each bond. Net income was P10,000,000. The income tax rate is 30%. Requirement: 1. What is the amount of basic earnings per share? 2. What is is the amount of diluted earnings per share?
Transcribed Image Text:On January 1, Cee Company's ordinary share capital amounted to P1,000,000, with P10 par value. On April 1, 2019, the entity issued P5,000,000, 10% bonds with a face value of P1,000. The bonds were converted on October 1, 2019 and 20 ordinary shares were issued in exchange for each bond. Net income was P10,000,000. The income tax rate is 30%. Requirement: 1. What is the amount of basic earnings per share? 2. What is is the amount of diluted earnings per share?
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