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Pagsanjan Company reported the following capital structure at year-end: 2020 2021 Outstanding shares: Ordinary Convertible preference 10% convertible bonds payable 600,000 100,000 P3,000,000 500,000 100,000 P3,000,000 During 2021, the entity paíd the annual dividend of P5 on preference share. The preference shares are convertíble into 200,000 ordinary shares and the 10% bonds are convertible into 100,000 ordinary shares. The net income for the current year was P5,000,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share

Pagsanjan Company reported the following capital structure at year-end: 2020 2021 Outstanding shares: Ordinary Convertible preference 10% convertible bonds payable 600,000 100,000 P3,000,000 500,000 100,000 P3,000,000 During 2021, the entity paíd the annual dividend of P5 on preference share. The preference shares are convertíble into 200,000 ordinary shares and the 10% bonds are convertible into 100,000 ordinary shares. The net income for the current year was P5,000,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pagsanjan Company reported the following capital structure at year-end: 2020 2021 Outstanding shares: Ordinary Convertible preference 10% convertible bonds payable 600,000 100,000 P3,000,000 500,000 100,000 P3,000,000 During 2021, the entity paid the annual dividend of P5 on preference share. The preference shares are convertíble into 200,000 ordinary shares and the 10% bonds are convertible into 100,000 ordinary shares. The net income for the current year was P5,000,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
Transcribed Image Text:Pagsanjan Company reported the following capital structure at year-end: 2020 2021 Outstanding shares: Ordinary Convertible preference 10% convertible bonds payable 600,000 100,000 P3,000,000 500,000 100,000 P3,000,000 During 2021, the entity paid the annual dividend of P5 on preference share. The preference shares are convertíble into 200,000 ordinary shares and the 10% bonds are convertible into 100,000 ordinary shares. The net income for the current year was P5,000,000. The income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share
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