Compute the impact of these convertible bonds on Sarasota's diluted earnings per share
Q: Sarasota Inc. issued $4,170,000 of 10%, 10-year convertible bonds on June 1, 2020, at 97 plus…
A: Solution: When a bond is sold at a discount, the amount of the bond discount must be amortized to…
Q: Marigold Inc. had net income for the current year ending December 31, 2020 of $872,880. During the…
A: Earnings per share refers to the profit earned during the period that is attributable to each common…
Q: On December 1, Y4, Boston Corp. issued $4,600,000 (par value), 12%, 5-year convertible bonds for…
A:
Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $350,000 and a…
A: Journal entries refers to the systematic documentation of the financial transactions of a company in…
Q: On January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation…
A: The question is based on the concept of Financial Accounting.
Q: The information below pertains to Pina Company for 2021. Net income for the year $1,230,000 7%…
A: (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)…
Q: Trear Company has $80,000, 10%, 12 year convertible bonds outstanding. These bonds were sold at face…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Sunland Inc. issued $4,320,000 of 9%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued…
A: Working Notes: Computation of discount on bonds payable: Particulars Amount (S) Semiannual…
Q: At the beginning of current year, Sandy Company issued 5,000 convertible bonds payable. The bonds…
A: Convertible bonds are fixed-income security or debt that earns a fixed rate of interest & can be…
Q: On January 1, 2018, when its $30 par value common stock was selling for$80 per share, a corporation…
A: Journal entry is the primary reporting of the transactions in the account books.
Q: Oriole Company had 196000 shares of common stock, 19200 shares of convertible preferred stock, and…
A: When all the convertible securities of the company are converted, then the EPS (Earning per share)…
Q: The information below pertains to Crane Company for 2021. Net income for the year $1.210,000 7%…
A: EPS or Earnings-per-Share refers to portion of net profit that belongs to each single unit of common…
Q: Concord Corporation had 199000 shares of common stock, 20700 shares of convertible preferred stock,…
A: The computation of the Basic earnings per share for 2021 is as follows:
Q: On August 31, 2015, Chickasaw Industries issued $25 million of its 30-year, 6% convertible bonds…
A: 1.
Q: If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold…
A: Given is: Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to…
Q: urnal entry for April 1, 2021 bond conversion?
A:
Q: Wasabi Inc. and Tempura Corporation have both issued 5 million common stocks. In addition, Wasabi…
A: Conversion Value : It is determined by multiplying the Stock Price by the Conversion ratio.…
Q: Young company issued 5,000 convertible bonds at the beginning of the current year. The bonds have a…
A: The bonds were not converted and instead, the entity paid off the convertible bondholders at…
Q: Air Supply issued $6 million of 9%, 10-year convertible bonds at 101. The bonds are convertible into…
A: Total issue price of the bonds = Face value x issue price…
Q: During the past 2 years Meacham Industries issued three separate convertible bonds. For each of…
A: A bond is an instrument that represents the loan that is made by the investor to the company and…
Q: On June 30, 2021, Marc Industries had outstanding $800 million of 8% convertible bonds that mature…
A: From the question we get the following data: Face value of the bond converted = $800 million * ½ =…
Q: On May 1, 2011, Stone Corporation issued $4 million of 10-year, 6% convertible bonds at 101. The…
A: Convertible bonds are described as those types of bonds which can be converted into predetermined…
Q: Mae Jong Corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of…
A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…
Q: During the past 2 years Meacham Industries issued three separate convertible bonds. For each of…
A: A bond is an instrument that represents the loan that is made by the investor to the company and…
Q: Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was…
A:
Q: ABC, Inc., has 757 shares of common stock outstanding at a price of $62 a share. They also have 197…
A: The weight of the preferred stock is the proportion of preferred equity in the total capital of the…
Q: The following information was obtained from the statement of financial position of NORWAY, INC. on…
A: The answers for the multiple choice questions and relevant computation are shown hereunder : The…
Q: During 2020, Masefield, Inc. had the following convertible securities outstanding: • $200,000 of 6%…
A: Earnings per share is an useful financial metric for an investor or shareholder through which an…
Q: Richmond Co. sold convertible bonds at a premium. Interest is paid on May 31 and November 30. On May…
A: Convertible Bonds: Convertible bonds are long-term debts issued by a corporation carrying a fixed…
Q: On December 31, 2011, Cey Company had outstanding 10%,P1,000,000 face amount convertible bonds…
A: Share Premium: The difference between the par value of a firm's shares and the total money collected…
Q: At the beginning of the current year, Cove Company, a closely-held entity, issued 6% bonds with a…
A: Solution Concept In case of the compound financial instrument Compound financial instrument is the…
Q: In April 2007, Blood corporation issued 3,000,000 of 10% nonconvertible bonds at 102 that are due on…
A:
Q: Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book…
A: Face value of common stock = (Face value of bonds / $1000) x no. of shares x par value per share =…
Q: Tallent, Inc. has outstanding convertible bonds with $20 million face value, $19.5 million book…
A: When bonds are converted into equity shares then the book value of the bond is debited and stock…
Q: Waterway Industries had 200000 shares of common stock, 19300 shares of convertible preferred stock,…
A: Diluted Earnings Per Share: The diluted earnings per share (diluted EPS) of a corporation is…
Q: Wild Cat Corporation has a $1,000,000 debt issue that is convertible into 10,000 prdinary shares.…
A: a) Basic EPS = Net income/Weighted average number of outstanding shares b) Diluted EPS = {Net…
Q: Uberita Company issued 5,000 convertible bonds at the beginning of the current year. The bonds had a…
A: Date Transaction Debit Credit Jan-01 Cash 5000000 6% Convertible Bonds Payable 4515000…
Q: n January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation…
A: Date Account Title and Explanation Debit Credit Jan 1, 2015 Cash $11,000,000 Bonds Payable…
Q: Larkspur Inc. issued $3,780,000 of 10%, 10-year convertible bonds on June 1, 2020, at 99 plus…
A:
Q: 1. Irredeemable bonds were issued at 103 but registration and other fees amounted to 5% of issue…
A: Solution : Note :as per bartleby guidelines we are required to answer the first question only please…
Q: On January 1, 2017, Slug Corporation issued $64 million of 6%, 10-year convertible bonds at 103. The…
A: Transaction General Journal Debit Credit 1.a Cash (6400000*103%) $6,592,000…
Q: Items 21 and 22 are based on the Following Information: Fortunato Company had 200,000 ordinary…
A: Given information, On January 1st,2015, Number of ordinary shares outstanding = 200,000. Net income…
Q: In 2019, Crane Ltd. issued $48,000 of 9% bonds at par, with each $1,000 bond being convertible into…
A: Diluted EPS is the earnings per share whereby the weighted average shares includes the effect of…
Q: On July 1, 2018, bondholders converted bonds of Vebbz Corporation with a face value of $90,000 into…
A: The correct option is c i.e., Common Stock -] CR $81,000; Contributed Surplus - Conversion - CR…
Q: sarasota corporation has 9% convertible bonds outstanding. it recorded interest expense (net of…
A: This question is providing the conversion of the 9% convertible bonds outstanding and there are $…
Sarasota Corporation has 9% convertible bonds outstanding. It recorded interest expense (net of income taxes) of $6,300 on these bonds during the year. The bonds are convertible into 2,500 shares of common stock. Compute the impact of these convertible bonds on Sarasota's diluted earnings per share.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary shares. During the year, Manila Co. reported a net income of P5,000,000. The income tax rate is 30%. Besides, Manila Co. has 4,000, 10% convertible bonds with 1,000 face amount. Each bond is convertible into five (5) ordinary shares. Required: Solve for the following: 1. Determine the amount of basic earnings per share for the year. 2. Determine the amount of diluted earnings per share under each of the following scenarios. a. Bonds were issued on January 1, 2X16, and there were no conversions made during the year. b. Bonds were issued on April 1, 2X16, and there were no conversions made during the year. c. Bonds were issued in the previous year and were converted on October 1, 2X16.sarasota corporation has 9% convertible bonds outstanding. it recorded interest expense (net of income taxes) Oven $6,300 on these bonds during the year. The bonds are convertible into 2500 shares of common stock. compute the impact of these convertible bonds on Sarasota diluted earnings per share.MANILA CO. On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary shares. During the year, Manila Co. reported a net income of P5,000,000. The income tax rate is 30%. Besides, Manila Co. has 4,000, 10% convertible bonds with 1,000 face amount. Each bond is convertible into five (5) ordinary shares. Determine the amount of basic earnings per share for the year. Determine the amount of diluted earnings per share under each of the following scenarios. Bonds were issued on January 1, 2X16, and there were no conversions made during the Bonds were issued on April 1, 2X16, and there were no conversions made during the Bonds were issued in the previous year and were converted on October 1, 2X16
- Kansas Instruments reported $9,200,000 in net income for the current year. The company had $4,800,000 of 6% cumulative, non-convertible preferred stock outstanding all year, and issued, $6,000,000 of 6.5% convertible bonds issued on April 1. Each bond is convertible into 50 shares of common stock. Common shares outstanding all year were 1,900,000. Compute both basic and diluted EPS when the tax rate is 25%. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.During the current year, North Corporation had 2 million shares of common stock outstanding. Two thousand 10% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported net income of $2 million for the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. What is diluted EPS (rounded)? A. $1.00. B. $0.90. C. $0.95. D. $1.10. -3-Crane Limited had $2.39 million of bonds payable outstanding and the unamortized premium for these bonds amounted to $44,600. Each $1,000 bond was convertible into 20 preferred shares. All bonds were then converted into preferred shares. The Contributed Surplus - Conversion Rights account had a balance of $21,500. Assume that the company follows IFRS. a. Assuming that the book value method was used, what entry would be made? Account Titles and Explanation Debit Credit b. Assume that Crane Ltd. offers $9,000 to induce early conversion. What journal entry would be made? Account Titles and Explanation Debit Credit
- Gerard Corporation has the following convertible bonds. A $100,000 convertible bond was issued at par on January 1, 2021, at 4%. The bond is convertible into 30,000 shares of common stock. Additionally, there was a convertible bond that was purchased on November 1, 2021, at par, for $200,000 with an interest rate of 6%, this bond is convertible into 20,000 shares of common stock. Both bonds pay interest annually. Gerard Corporation has total revenue of 800,000 and expenses of 400,000, which does not include interest expense or taxes. The tax rate is 40%. Additionally, the organization currently has 300,000 shares of common stock outstanding for the entire year. No dividends were paid in 2021. a. Calculate Earnings per share. b. Calculate Dilutive Earnings per share using the if converted methodGerard Corporation has the following convertible bonds. A $100,000 convertible bond was issued at par on January 1, 2021, at 4%. The bond is convertible into 30,000 shares of common stock. Additionally, there was a convertible bond that was purchased on November 1, 2021, at par, for $200,000 with an interest rate of 6%, this bond is convertible into 20,000 shares of common stock. Both bonds pay interest annually. Gerard Corporation has total revenue of 800,000 and expenses of 400,000, which does not include interest expense or taxes. The tax rate is 40%. Additionally, the organization currently has 300,000 shares of common stock outstanding for the entire year. No dividends were paid in 2021. Calculate Earnings per share. Calculate Dilutive Earnings per share using the if converted method.Metlock Corporation had net income for the current fiscal year of $ 952, 200, and common shares outstanding of 92,000. There were no changes to Metlock's common shares during the year.Metlock also had outstanding a $1,000,000,9 % bond sold in a previous year that was convertible to 82,000 common shares. In addition, Metlock sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 13% bond, convertible to 76,000shares. Metlock was subject to a tax rate of 27 %. Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Basic EPS Sub Total Diluted EPS $ $ Numerator Denominator $ $ EPS 11
- Fermin company had 200,000 ordinary shares outstanding on January 1. In addition, as of January 1, the company had issued 4,000 convertible 10% bonds with 1,000 face value. The company has no other potentially dilutive securities. The bonds were converted on October 1 and 40 ordinary shares were issued in exchange for each bond. Accrued interest on the bonds was recognized and paid on that date. Net income for the year was 5,000,000. The income tax rate is 30%. a. What is the amount of basic earnings per share? b. What is the amount of diluted earnings per share?Sara Corporation had net income for the year of $720,000 and a weighted average number of common shares outstanding during the period of 250,000 shares The company has a convertible bond issue outstanding. The bonds were issued four years ago at par ($3,000,000), carry a 7% interest rate, and are convertible into 50,000 shares of common stock. The company has a 40% tax rate. Diluted earnings per share are ⒸA. $2.68. B. $2.82. OC. $3.10. OD. $1.98 Reset SelectionNichols Corporation has the following convertible bonds. A $100,000 convertible bond was issued at par on January 1, 2021, at 4%. The bond is convertible into 30,000 shares of common stock. Additionally, there was a convertible bond that was purchased on November 1, 2021, at par, for $200,000 with an interest rate of 6%, this bond is convertible into 20,000 shares of common stock. Both bonds pay interest annually. Nichols Corporation has total revenue of 800,000 and expenses of 400,000, which does not include interest expense or taxes. The tax rate is 40%. Additionally, the organization currently has 300,000 shares of common stock outstanding for the entire year. No dividends were paid in 2021. A. Calculate Earnings per share. B. Calculate Dilutive Earnings per share using the if converted method.