Un January 1, 2020, Coronado Company issued 10-year, $1,870,000 face value, 6% bonds, at par. Each $1.000 bond is convertible into 15 shares of Coronado common stock. Coronado's net income in 2020 was $462,800, and its tax rate was 20%. The company had 104,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, es $2.55) Diluted earnings per share $ 4.18 (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,040,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Coronado common stock. (Round answer to 2 decimal places, eg $2.55) Diluted earnings per share $ 3.00

Un January 1, 2020, Coronado Company issued 10-year, $1,870,000 face value, 6% bonds, at par. Each $1.000 bond is convertible into 15 shares of Coronado common stock. Coronado's net income in 2020 was $462,800, and its tax rate was 20%. The company had 104,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, es $2.55) Diluted earnings per share $ 4.18 (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,040,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Coronado common stock. (Round answer to 2 decimal places, eg $2.55) Diluted earnings per share $ 3.00

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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Subject: acounting
On January 1, 2022, Shamrock SA issued 10-year, €1,870,000 face value, 6% bonds, at par. Each €1,000 bond is convertible into 15 ordinary shares of Shamrock. Shamrock's net income in 2023 was €462,800, and its tax rate was 40%. Interest expense on the liability component in 2023 was €130,900. The company had 104,000 ordinary shares outstanding throughout 2022. None of the bonds were converted in 2022. (a) Compute diluted earnings per share for 2022. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share € (b) Compute diluted earnings per share for 2022, assuming the same facts as above, except that €1,040,000 of 6% convertible preference shares were issued instead of the bonds. Each €100 preference share is convertible into 5 ordinary shares of Shamrock. (Round answer to 2 decimal places, eg. 2.55.) Diluted earnings per share €
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12) On April 1, 2021, ABC Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of ABC's common stock. No bonds were converted during 2021. Throughout 2021, ABC had 1,000 shares of common stock outstanding. ABC's 2021 net income was $4,500, and its income tax rate is 20%. ABC's diluted earnings per share for 2021 would be (rounded to the nearest penny)?
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Larkspur Inc. issued $3,780,000 of 10%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,417,500 of these bonds were converted into 36,000 shares of $21 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued.(b) Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.