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
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
Problem 8-8 (AICPA Adapted) Faye Company provided the following data for the current year: Proceeds from sale of equipment Purchase of bond investment Dividend declared Dividend paid Proceeds from sale of treasury shares What is the net cash provided by financing activities? 100,000 1,800,000 450,000 380,000 750,000 a. 200,000 b. 270,000 c. 300,000 d. 370,000 AH
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
6. Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally issued at an average price of $10 per share. How much gain or loss should Assad report on its statement of comprehensive income as a result of this transaction? a.$0 b.$20,000 loss c.$100,000 gain d.$20,000 loss and $100,000 gain
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
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Question 4 Company P’s net profit for Year 1 is 4 600 000. capital structure of P comprising 3 000 000 ordinary shares and 500 000 equity-classified preference shares in issue throughout Year 1. Each preference share provides for a cumulative discretionary dividend each year of R1.20; and preference shares have no further rights to participate in dividends with ordinary shares. There are no tax effects on payment of preference dividends.Calculate the basic EPS
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Question Content Area The charter of a corporation provides for the issuance of 115,018 shares of common stock. Assume that 35,485 shares were originally issued and 3,170 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared? a. $64,630 b. $35,485 c. $3,170 d. $115,018