The following transactions have also occurred at Marigold.1.2.3.4.5.6.Options were granted on July 1, 2024, to purchase 180,000 shares at $16 per share. Although no options were exercisedduring fiscal year 2025, the average price per common share during fiscal year 2025 was $20 per share.Each bond was issued at face value. The 9% convertible bonds will convert into common stock at 50 shares per $1,000 bond.The bonds are exercisable after 5 years and were issued in fiscal year 2024.The preferred stock was issued in 2024.There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2025.The 980,000 shares of common stock were outstanding for the entire 2025 fiscal year.Net income for fiscal year 2025 was $1,520,000, and the average income tax rate is 20%.For the fiscal year ended June 30, 2025, calculate the following for Marigold Pharmaceutical Industries. (Round answers to 2 decimalplaces, e.g. 2.45.)a. Basic earnings per share.Basic earnings per share $b. Diluted earnings per share.Diluted earnings per share $ Amy Dyken, controller at Marigold Pharmaceutical Industries, a public company, is currently preparing the calculation for basic anddiluted earnings per share and the related disclosure for Marigold's financial statements. Below is selected financial information forthe fiscal year ended June 30, 2025.Long-term debtNotes payable, 10%9% convertible bonds payable10% bonds payableTotal long-term debtMarigold Pharmaceutical IndustriesSelected Balance Sheet InformationJune 30, 2025Shareholders' equityPreferred stock, 6% cumulative, $50 par value, 98,000 shares authorized, 24,500 shares issued and outstandingCommon stock, $1 par, 9,800,000 shares authorized, 980,000 shares issued and outstandingAdditional paid-in capitalRetained earningsTotal shareholders' equity$1,010,0005,030,0005,990,000$12,030,000$1,225,000980,0004,010,0006,040,000$12,255,000

Earnings per share is a commonly used word to describe how profitable a business is. The value of…

Answered: The following transactions have also…

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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On 1 June 2016, Agate Bhd has issued a total of 800000 ordinary shares. On 1 April 2018, Agate Bhd issued an additional 600000 shares for cash. All 1400000 shares were outstanding on 31 December 2018. It also issued RM 600000 of 20-year 8% convertible bonds on 1 July 2016. Each RM 100 bond converts to 40 ordinary shares. None of the bonds have been converted to date. The interest expense on the liability component of convertible bonds for 2018 was RM 30000. The profit after tax for the year ended 31 December 2016 is RM 1540000. The tax rate is 40%. Required: a) Compute the number of ordinary shares to be used for calculating for 2016: i. Basic EPS ii. Diluted EPS b) Compute the earnings figures to be used for calculating for 2016: i. Basic EPS ii. Diluted EPS c) Compute basic EPS for 2016. d) Compute diluted EPS for 2016.
unsure if the first question is correct
Chandelier Company issued 4-year P5,000,000 face value of 14% convertible bonds at 106 on January 1,2020, maturing on January 1, 2025 and paying interest annually on December 31. It is reliably ascertained that the bonds would sell at P5,100,000 without the conversion feature with an effective yield of 12%. Each P1,000 bond is convertible into 10 shares of P100 par value share capital. What is the entry to record the issuance of bonds? Prepare other necessary journal entries relating to the problem
On December 31, 2019, OLGA Inc. sold convertible bonds to Nuttin Corp. for$38,375,000. The bonds have a face value of $40,000,000, a term of 10 years and coupon payments each June 30 and December 31 at 5% per annum. The yield to maturity on similar bonds without the conversion feature is 6%. The bonds areconvertible into 10 common shares for each $1,000 bond. OLGA Inc. reports under IFRS. Prepare the journal entry that OLGA Inc. should record for the issuance of these bonds at December 31, 2019
Arco, Inc. issued $300,000 of 4%, 10-year convertible bonds at par on July 1, 2022. Each bond has a par value of $1000. The bonds include the option for bondholders to convert each bond into 50 $1 par value shares of common stock beginning two years after the date of issue. The market price of the stock at the time of issue is $25 per share and the beneficial conversion option is valued at $75,000. On July 2, 2024, when the market price of the stock is $35 and the balance in the Discount account is $66,000, all of the bondholders convert the bonds. What is the proper entry to record the conversion of the bonds? Group of answer choices Date Account Debit Credit July 2, 2024 Bonds Payable 300,000 Discount on Bonds Payable 75,000 Common Stock, $1 par, 15,000 shares 300,000 Add. Paid-in Capital—Bene. Conv. Option 75,000 Date Account Debit Credit July 2, 2024 Bonds Payable 300,000 Add. Paid-in Capital—Bene. Conv. Option 75,000 Discount…
In December 2022, Pronghorn Corp. decided to issue 100,000 convertible bonds, maturing in December 2032. The bonds have a face value of $1,000 and promise an annual coupon payment of 6.00 percent. The conversion ratio of these bonds is 25.86, and it is known that Pronghorn Corp's common shares were trading at $35 in December 2022. These bonds are rated A-, and straight bonds from similar companies with similar maturity yield 9 percent. The current market price of these bonds is $1,066. Calculate the conversion price, conversion value, SBV, floor value, and conversion premium for these bonds. (Round answers to 2 decimal places, e.g. 125.25 or 25.25%.) Conversion price Conversion value $ SBV Floor value Conversion premium $ %
On September 30, 2023, Sunland Inc. issued $3,280,000 of 10-year, 8% convertible bonds for $3,772,000. The bonds pay interest on March 31 and September 30 and mature on September 30, 2033. Each $1,000 bond can be converted into 80 no par value common shares. In addition, each bond included 20 detachable warrants. Each warrant can be used to purchase one common share at an exercise price of $15. Immediately after the bond issuance, the warrants traded at $3 each. Without the warrants and the conversion rights, the bonds would have been expected to sell for $3,444,000. On March 23, 2026, half of the warrants were exercised. The common shares of Sunland were trading at $20 each on this day. Immediately after the payment of interest on the bonds, on September 30, 2028, all bonds outstanding were converted into common shares. Assume the entity follows IFRS. (e) Your answer is partially correct. Prepare the journal entry to account for the exercise of the warrants on March 23, 2026. (Credit…
2) On January 1, 2020, CBT Corp issued 20,000, 20 year, $1,000 bonds. The bonds have an annual coupon of $50, payable on December 31 of each year. Each bond can be convertible in to five common shares. The bonds sold for 120 and it is estimated that the bonds would have sold for 105 if they did not have the convertible option. Required: a. Prepare the journal entry to recognize the bond sale made by CBT on January 1, 2020. b. On January 1, 2023, 2,000 bonds were converted into common shares. Prepare the journal entry to recognize the conversion transaction.
Please help me. Thankyou.
Florence Inc. issued 8,000, 5-year convertible bonds of $2,000 each for $4,000,000 at the beginning of 2021. The bonds have a stated rate of interest of 9% and interest is payable annually. Each bond can be convertible into 100 shares with a par value of $10. The market rate of similar nonconvertible debt is 10%. Determine the fair value of the equity component using the “with-and-without” method is a. $3,848,288 b. $2,483,600 c. $1,365,688 d. $151,712
20. On December 31, 2011, Cey Company had outstanding 10%,P1,000,000 face amount convertible bonds payable maturing on December 31, 2014. Interest is payable on June 30 and December 31. Each P1,000 bond is convertible into 50 shares of P10 par value. On December 31, 2011, the unamortized premium on bonds payable was P60,00O. On December 31, 2011, 400 bonds were converted when Cey's share had a market price of P24. Cey incurred P4,000 in connection with the conversion. No-equity component was recognized when the bonds were originally issued. What is the share premium from the issuance of shares as a result of the bond conversion on December 31, 2011? a. 176,000 b. 220,000 c. 276,000 d. 280,000
Please solve correctly with everything . also calculate diluted earnings per share.

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