Chapter 3, Problem 3.6P

Please explain the solution to this general accounting problem with accurate principles.

Can you solve this financial accounting problem with appropriate steps and explanations?

Please provide the answer to this financial accounting question using the right approach.

On January 1, 2024, Sunfish Co. issued a $22 million, 8%, 6-year convertible bond with annual coupon payments. Each $1,000 bond was convertible into 35 shares of Sunfish's common shares. Shark Investments purchased the entire bond issue for $22.7 million on January 1, 2024. Shark estimated that without the conversion feature, the bonds would have sold for $21,013,098 (to yield 9%).  On January 1, 2025, Shark converted bonds with a par value of $8.8 million. At the time of conversion, the shares were selling at $30 each.    Required  Prepare the journal entry to record the issuance of convertible bonds.  Prepare the journal entry to record the conversion according to IFRS (book value method).  Prepare the journal entry to record the conversion according ASPE (market value method).

RoseBud Motel Ltd. (RM) had 100,000 ordinary shares outstanding during all of 2025, all owned by the owner Johnny Rose. In 2023, RM issued $500,000, 3% non-cumulative preferred shares. Each $100 preferred share is convertible into one ordinary share. RM also had 6,000, $100 cumulative preferred shares outstanding that are each entitled to an annual dividend of $1.60. Each preferred share is convertible into two ordinary shares.  RM’s net income for the year ended December 31, 2025, was $400,000. Its income tax rate was 20%. The annual dividend was declared and paid during 2025 on the cumulative preferred shares but not on the non-cumulative shares.      Required  Calculate RM’s basic EPS for 2025.  Are the non-cumulative convertible preferred shares dilutive or antidilutive in nature? The cumulative convertible preferred shares? Support your answer with calculations.   Calculate RM’s diluted EPS for 2025.

Give correct answer this general accounting question

Hogwarts Inc. (HI) had 80,000 ordinary shares outstanding on January 1, 2025. Transactions throughout 2025 affecting its shareholdings follow.    February 1: HI issued 200,000, $10, cumulative 10% preferred shares. March 1: HI issued 40,000 ordinary shares. April l: HI declared and issued an 8% stock dividend on the ordinary shares. July 1: HI repurchased and cancelled 30,000 ordinary shares. October 1: HI declared and issued a 3-for-l stock split on the ordinary shares. December 31: HI declared $99,600 in dividends on the ordinary shares. Net income for the year ended December 31, 2025, was $600,000. Its tax rate was 40%.     Required  What was the weighted average number of ordinary shares outstanding in 2025?  What was the basic EPS in 2025?  If the preferred shares issued on February 1, 2025, were non-cumulative, what would basic EPS for 2025 have been?

Financial Accounting Question

Please need answer the general accounting question