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pald PI00,000 cash dividends on its convertible preference shares The earnings per share, rounded to the nearest centavo. for the year ended December 31, 2006 should bc a. P1.26. b. P1.32. P3.00. с. d. Р3.14.

pald PI00,000 cash dividends on its convertible preference shares The earnings per share, rounded to the nearest centavo. for the year ended December 31, 2006 should bc a. P1.26. b. P1.32. P3.00. с. d. Р3.14.

FINANCIAL ACCOUNTING
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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Multiple choice pls answer numbers 9 to 11

Gross Profit Variation Analysis and Earnings Per Share Determination 267 At December 31, 2005, the Monica Company had 50,000 ordinary shares issued and outstanding. On April 1, 2006. an additional 10.000 ordinary shares were issued. Monica's net income for the year ended December 31, 2006, was P172.500. During 2006. Monica declared and paid P100,000 cash dividends on its convertible preference shares The earnings per share, rounded to the nearest centavo. for the year ended December 31, 2006 should bc 9. P1.26. b. P1.32. P3.00. C. d. P3.14. a. At December 31, 2005, the Ross Company had 2.000 000 ordinary shares outstanding. ordinary shares of convertible preference shares whic. were potential ordinary shares and paid P2,000,000 cash dividends on the ordinary shares and P1,000,000 cash dividends on the preference shares. Net income for the year ended December 31, 2006, was P9,000,000 Assuming an income tax rate of 50%, what should be the diluted earnings per share for the year ended December 31, 2006? 10. On January 1. 2006. Ross issued 1,000.000 a. P3.00 b. P4.00 с. P4.25 d. P4.50 At December 31, 2005, the Jocy Company had 400,000 ordınary shares outstanding. ordinary shares wcre issued. In addition, Jocy had PI0.000.000 of 8% convertible bond outstanding at December 31, 2005 which are convertible into 225,000 ordinary shares. The bonds were considered potential ordinary shares and no bonds were converted into ordinary shares in 2006. The net income for the year ended December 31. 2006, was P3,500,000. Assuning that the income tax rate was 35%. diluted earnings per share for the year ended December 31, 2006 should be Р6.00. b. Р6.62. 11. On October I, 2006, an additional 100.000 a. C. P7.00. d. none of the above
Transcribed Image Text:Gross Profit Variation Analysis and Earnings Per Share Determination 267 At December 31, 2005, the Monica Company had 50,000 ordinary shares issued and outstanding. On April 1, 2006. an additional 10.000 ordinary shares were issued. Monica's net income for the year ended December 31, 2006, was P172.500. During 2006. Monica declared and paid P100,000 cash dividends on its convertible preference shares The earnings per share, rounded to the nearest centavo. for the year ended December 31, 2006 should bc 9. P1.26. b. P1.32. P3.00. C. d. P3.14. a. At December 31, 2005, the Ross Company had 2.000 000 ordinary shares outstanding. ordinary shares of convertible preference shares whic. were potential ordinary shares and paid P2,000,000 cash dividends on the ordinary shares and P1,000,000 cash dividends on the preference shares. Net income for the year ended December 31, 2006, was P9,000,000 Assuming an income tax rate of 50%, what should be the diluted earnings per share for the year ended December 31, 2006? 10. On January 1. 2006. Ross issued 1,000.000 a. P3.00 b. P4.00 с. P4.25 d. P4.50 At December 31, 2005, the Jocy Company had 400,000 ordınary shares outstanding. ordinary shares wcre issued. In addition, Jocy had PI0.000.000 of 8% convertible bond outstanding at December 31, 2005 which are convertible into 225,000 ordinary shares. The bonds were considered potential ordinary shares and no bonds were converted into ordinary shares in 2006. The net income for the year ended December 31. 2006, was P3,500,000. Assuning that the income tax rate was 35%. diluted earnings per share for the year ended December 31, 2006 should be Р6.00. b. Р6.62. 11. On October I, 2006, an additional 100.000 a. C. P7.00. d. none of the above
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