Problem 20-6 (IAA) On January 1, 2021, Judy Company had 200,000 P50 par value ordinary shares outstanding. In addition, on January 1, 2021, the entity had issued 30,000 convertible cumulative 10%'preference shares with P100 par value. These preference shares were converted on September 1, 2021. Each preference share was converted into 5 ordinary shares. The preference dividends for the entire year were paid in full before the conversion. The entity had no other potentially dilutive securities. Net income for the current year was P5,000,000. Required: 1. Basic earnings per share 2. Diluted earnings per share
Problem 20-6 (IAA) On January 1, 2021, Judy Company had 200,000 P50 par value ordinary shares outstanding. In addition, on January 1, 2021, the entity had issued 30,000 convertible cumulative 10%'preference shares with P100 par value. These preference shares were converted on September 1, 2021. Each preference share was converted into 5 ordinary shares. The preference dividends for the entire year were paid in full before the conversion. The entity had no other potentially dilutive securities. Net income for the current year was P5,000,000. Required: 1. Basic earnings per share 2. Diluted earnings per share
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem 20-6 (IAA)
On January 1, 2021, Judy Company had 200,000 P50 par
ordinary shares outstanding.
value
In addition, on January 1, 2021, the entity had issued 30,000
convertible cumulative 10%'preference shares with P100 par
value.
These preference shares were converted on September 1,
2021. Each preference share was converted into 5 ordinary
shares.
The preference dividends for the entire year were paid in
full before the conversion. The entity had no other potentially
dilutive securities.
Net income for the current year was P5,000,000.
Required:
1. Basic earnings per share
2. Diluted earnings per share
629
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