The information below pertains to Windsor Company for 2026.Net income for the year7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stockCommon stock, $10 par valueTax rate for 2026Average market price of common stock4a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.)Basic earnings per share $b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.)Diluted earnings per shareThere were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is notreasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at$20 per share.eTextbook and Media1.65$$1,210,001,970,004,200,005,820,0020%$25 per shar▶

Earnings per share refers to the earnings attributable to the outstanding common stockholders in the…

The information below pertains to Windsor Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock 4 $1,210,00 1,970,00 4,200,00 5,820,00 20% $25 per shar There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at

The information below pertains to Windsor Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock 4 $1,210,00 1,970,00 4,200,00 5,820,00 20% $25 per shar There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. Pamela Company showed the following accounts on December 31, 2020. Bonds Payable 5,000,000 Premium on Bonds Payable 250,000 Share capital- 250,000 shares authorized and 200,000 shares issued, P50 par 10,000,000 Share premium- issuance 2,000,000 Share premium-conversion privilege 500,000 Retained earnings 2,500,000 The bonds are convertible into 10 shares of capital for every P 1,000 bond. On December 31, 2020, the entire bond issue was converted and on this date, the market value of the share is 120 and the market value of the bonds is 103. The entity paid P 200,000 as a result of the bond conversion. Required: Prepare journal entries for the conversion of the bonds on December 31, 2020
Jay Give me correct answer with explanation
Current Attempt in Progress On January 2, 2021, Crane Company issued at par $1920000 of 5% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Crane had 206000 shares of common stock outstanding during 2021. Crane's 2021 net income was $904000 and the income tax rate was 25%. Crane's diluted earnings per share for 2021 would be (rounded to the nearest penny): O $4.47. O $4.77. O $4.39. O $4.33. Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air
Do not give image format
EPS with Convertible Bonds and Preferred Stock The Ehrlich Corporation issued 10-year, $5,000,000 par, 7% callable convertible bonds on January 2, 2022. The bonds have a par value of $1,000, with interest payable annually. Each bond is convertible into 18 shares of common stock. The bonds were issued at 100. Ehrlich's effective tax was 20%. Net income in 2022 was $9,500,000, and the company had 2,000,000 shares outstanding during the entire year.Instructions: a. Compute both basic and diluted earnings per share. Show calculations. b. Recompute the schedule as if the security was convertible cumulative preferred stock, $5,000,000, 8%, $100 par value. Each share of preferred stock is convertible into 1 share of common stock.
PROVIDE COMPUTATION
The information below pertains to TV Johnny Company for Year 11: Net income for the year $1,200,000 7% convertible bonds issued at par ($1,000 bond); each bond convertible into 30 shares of common stock 2,000,000 6% convertible, cumulative preferred stock, $100 par value; each share convertible into 3 shares of common stock 4,000,000 Common stock, $10 par value 6,000,000 Income tax rate for Year 11 20% Average market price of common stock during Year 11 $25 per share Market price of common stock on December 31, Year 11 $30 per share There were no changes during Year 11 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common…
Jones Corporation’s capital structure follows. December 31 2020 Outstanding shares of stock Common stock, outstanding shares 110,000 Convertible preferred stock, outstanding shares 10,000 8% Convertible bonds $1,000,000 During 2020, Jones declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock. The 8% bonds are convertible into 30,000 shares of common stock. Net income for 2020 is $850,000. Assume that the income tax rate is 25%. a) Compute basic EPS for 2020. b) Compute diluted EPS for 2020. c) Prepare the bottom of the company’s income statement in proper form, beginning with the net income.
Oriole Corporation issued $6600000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus accrued interest. The bonds were dated April 1, 2024 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2025, $1320000 of these bonds were converted into 600 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. If Interest Payable was credited when the bonds were issued, what amount should be debited to Interest Expense on October 1, 2024? O $155100 O $297000 O $141900 O $148500
The table below shows a partial view of Webster Corporation's balancesheet. Webster CorporationBalance Sheet (partial)At December 31, 2021 Long-term debt Notes payable 10% $2,000,00010% convertible bonds payable 2,500,00012% convertible bonds payable 3,000,000Total long-term debt $7,500,000 Stockholders' equity 6% cumulative, convertiblepreferred stock, $100 par, 50,000shares outstanding. 5,000,000 Common stock, $1 par, 600,000shares outstanding. 600,000Additional paid-in capital 2,500,000 Retained earnings 8,500,000Total stockholders' equity $16,600,000 Notes and Assumptions December 31, 20211. Options were granted in December 2020 to purchase 25,000 shares of common stock at $25 per share. The average market price of common stock during 2021 was $35 per share. All options are still outstanding atthe end of 2021 2. Both the 10 percent and 12 percent convertible bonds were issued in2020 at face value. Each convertible bond is convertible into 50 shares of common stock.…
Answer both the requirement with all working,,,,answer in text form please (without image)
Rakesh