tion 6 On January 1, 20B, Lovell company had 600,000 ordinary shares outstanding. On April 1, 20B, an additional 180,000 ordinary shares were issued for cash. Lovell also had P5,000,000 of 8% convertible bonds outstanding during 20B, which are convertible into 150,000 ordinary shares. The bonds are dilutive in the 20B earnings per share computation. No bonds were issued or converted into ordinary shares during 20B. What is the number of shares that should be used in computing diluted earnings per share? 735,000 780,000 885,000

tion 6 On January 1, 20B, Lovell company had 600,000 ordinary shares outstanding. On April 1, 20B, an additional 180,000 ordinary shares were issued for cash. Lovell also had P5,000,000 of 8% convertible bonds outstanding during 20B, which are convertible into 150,000 ordinary shares. The bonds are dilutive in the 20B earnings per share computation. No bonds were issued or converted into ordinary shares during 20B. What is the number of shares that should be used in computing diluted earnings per share? 735,000 780,000 885,000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 11QE

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Question 14 Brianna company has 2,500,000 ordinary shares outstanding on January 1, 20B. An additional 500,000 ordinary shares were issued on April 1, 20B, and 250,000 more on July 1, 20B. On October 1, 20B, Brianna issued 5,000, P1,000 face value, 7% convertible bonds. Each bond is convertible into 40 ordinary shares. No bonds were converted into ordinary shares in 20B. What is the number of shares to be used in computing diluted earnings per share? 2,875,000 2,925,000 3,000,000 3,050,000
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37 A company issues a $1,000 bond that is convertible into 100 shares of common stock with a par value of $1. At conversion, the Accumulated Discount on Bonds Payable is $100. What information should be included in the journal entry for the conversion? Debit Bonds Payable for $1,000 Credit Common Stock for $1,000 Credit Paid-in Capital in Excess of Par-Common Stock for $100 O Debit Discount on Bonds Payable for $100 NEXT > BOOKMARK
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Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on August 2? O $2,600 O $1.200 O $2,000 O $5,050 79°F Rain to
Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on August 2? O $2,600 Credit. O $1,200 Debit. O $5,050 Debit. O $1,200 Credit. O $100 Credit.
20. On December 2, Coley Corp. acquired 1,000 shares of its $2 par value common stock for $27 each. On December 20, Coley Corp. reissued 400 shares for $15 each. Which of the following is correct regarding the journal entry for the reissued shares? A. B. C. D. Debit Cash $15,000. Credit Treasury Stock $10,800. Credit Additional Paid in Capital $5,200. Credit Treasury Stock $6,000.
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Question 5: Kwun, Inc. purchases 1,000 shares of its own previously issued $5 par common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders’ equity?
Issuance of Ordinary Shares Problem #3 The Delgado Software Corporation is authorized to issue 80,000 ordinary shares. During the current year, the corporation issued 25,000 shares. Required: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares have a P5 par value and were sold for P20 per share. 2. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 3. The shares are no-par and have no stated value. They were issued at P25 per share.
7. Treasury stock that had been purchased for $5.600 last month was reissued this month for $8,500. The journal entry to record the reissuance would include a credit to a. Treasury Stock for $8,500 b. Paid-In Capital from Sale of Treasury Stock for $8.500 c. Paid-In Capital in Excess of Par-Common Stock for $2.900 d. Paid-In Capital from Sale of Treasury Stock for $2,900