Question 2 (a) City Limited has an issued ordinary share capital of $1 million, divided into ordinary shares of 25 cents each, and 500,000 $1 preference shares carrying a dividend of 7% p.a. The following information is provided in respect of Year 1 and Year 0. Statement of profit or loss and other comprehensive income (extracts) Year 1 $ Year 0 $ Profit before taxation Less: Taxation Profit after taxation 900,000 700,000 (200,000) (165,000) Dividends: Ordinary shares 700,000 (150,000) (100,000) 535,000 Preference shares (35,000) (35,000) Net profits 515,000 400,000 Required: Calculate the basic earnings per share for the year ended 31 December Year 1 and Year 0. Question 2 (a) Adjust preference dividends to net profits: Year 1 Year 0 $000 $000 Profits after tax 700 535 Less: Preference dividends (35) (35) 665 500 Basic EPS: Net Profits Weighted average number of shares EPS (b) Year 1 Year 0 665 500 4,000 4,000 16.6 cents 12.5 cents

Question 2 (a) City Limited has an issued ordinary share capital of $1 million, divided into ordinary shares of 25 cents each, and 500,000 $1 preference shares carrying a dividend of 7% p.a. The following information is provided in respect of Year 1 and Year 0. Statement of profit or loss and other comprehensive income (extracts) Year 1 $ Year 0 $ Profit before taxation Less: Taxation Profit after taxation 900,000 700,000 (200,000) (165,000) Dividends: Ordinary shares 700,000 (150,000) (100,000) 535,000 Preference shares (35,000) (35,000) Net profits 515,000 400,000 Required: Calculate the basic earnings per share for the year ended 31 December Year 1 and Year 0. Question 2 (a) Adjust preference dividends to net profits: Year 1 Year 0 $000 $000 Profits after tax 700 535 Less: Preference dividends (35) (35) 665 500 Basic EPS: Net Profits Weighted average number of shares EPS (b) Year 1 Year 0 665 500 4,000 4,000 16.6 cents 12.5 cents

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 7E: Basic Income Statement The following are selected account balances of Rule Corporation at the end of...

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CH Required information Sovran Financial Corporation reported net income of $154 mlion for the current year (tax rate 25%). Its capital structure consksted of the folkowing. Unchanged during the year Common Stock Jan. 1 60 million common shares were outstanding (S amounts in milions, except per share amount) Basic EPS: Netincome $154 $2.57 60 Shares outstanding 0:00/1:23 720p 1X CC O Knowledge Check 01 Greene Corporation reported net income of $300,000. The company had 60,000 common shares outstanding, which remained unchanged during the current year. What is the company's basic EPS? (Round your answer to 2 decimal places.) Basic EPS IMG-1894.jpg IMG-1895.jpg IMG-1896.jpg --pdf 490CA57F-89F1....pdf
Answer the question assuming that the preference share capital of Love Company are non-cumulative and that Love Company paid P1M cash dividends for the current year.
Required information ISSUHTICOC OL INCW SNICS Sovran Financial Corparation reported net income of $154 million for Year 1 (tax rate 25X Its capital structure included the following: Common Stock Jan. 1 60 milion common shares were outstanding Mar. 1 12 million new shares wee sold 60 million shares + 12 million new shares Jan. क. | Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. 0:00 / 2:07 720p 1x C Knowledge Check 01 On December 31, Year 1, the Reba Company had 120,000 shares of common stock issued and outstanding. On July 1, Year 2, the company sold 23,000 additional shares for cash. Reba's net income for the year ended December 31, Year 2, was $568,000. What is the basic earnings per share? (Round your answer to 2 decimal places.) Basic earnings per share Prev of 18 Next > IMG-1894.jpg IMG-1895.jpg
Required information [The following information applies to the questions displayed below.] The financial statements for Highland Corporation included the following selected information: Common stock Retained earnings Net income Shares issued Shares outstanding Dividends declared and paid The common stock was sold at a price of $36 per share. Required: 1. What is the amount of additional paid-in capital? $ 515,000 $ 890,000. Additional paid-in capital $ 1,110,000 103,000 64,000 $ 770,000
1. The following information was taken from the accounts of JT Corp at year end:Total income since incorporation P900,000Total cash dividends paid P260,000Proceeds from sale of donated shares P 90,000Total value of share dividends distributed P60,000Excess of proceeds over cost of treasury stocks sold P140,000What should be the current balance of retained earnings? a. P780,000b. P520,000c. P720,000d. P580,0002. see imagechoices: a. 176,000b. 263,000c. 204,000d. 321,000
Presented below are selected ledger accounts of Tamarisk Corporation as of December 31, 2020. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2020) Cash dividends paid (2020) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2019 Retained earnings, December 31, 2019 Effective tax rate 20% Your answer is correct. Compute net income for 2020. Net income tA $ 96800 $55,000 110,000 88,000 594,000 231,000 22,000 16,500 44,000 33,000 99,000
PUZZLE 11.4 COMPREHENSIVE EXAMPLE-BASIC AND DILUTED Extracts from group financial statements of AB, a public limited company, year ended April 30, 20X1 $m Profit from continuing operations 35,000 Loss on discontinued operations (tax relief $500 million) (1,500) Income tax (7,500) Minority interest (loss on discontinued activities $500 million) (1,500) Preference share appropriation-dividend (2 years) (30) -other (5) Share capital at April 30, 20X1 Ordinary shares of $1 1,000 5% Convertible preference shares 300 Other Information a) On January 1, 20X1, 48 million ordinary shares were issued on the acquisition of CD plc at a valuation of $190 million. If CD earns cumulative profits in excess of $8,000 million up to April 30, 20X2, an additional 10 million shares are issuable to the vendors. If the profits do not reach that amount, then only 2 million shares are issuable on April 30, 20X2. b) The profits for the three months to April 30, 20X1, are $1,200 million. c) On May 11, 20X1, there…
a company has the following items: share capital-ordinaty: $920,000 treasury shares : $85,000 deferred taxes $100,000 retained earning : $ 363,000 which ammount should be report as total equity ? A- 1098000 B- 1198000 C- 1298000 D- 1398000
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