Current Attempt in Progress At December 31, 2022, Oriole Inc. had 2999000 common shares outstanding. An additional 515000 common shares were issued on April 1, 2023, and 257500 more on July 1, 2023. On October 1, 2023, Culver issued 10000, $1000 par value, 8% convertible bonds. Each bond is convertible into 20 common shares. No bonds were converted in 2023. What is the number of shares to be used in calculating 2023 basic earnings per share and diluted earnings per share, respectively? O 3514000 and 3771500 O 3514000 and 3564000 O 3771500 and 4286500 3514000 and 3514000

Current Attempt in Progress At December 31, 2022, Oriole Inc. had 2999000 common shares outstanding. An additional 515000 common shares were issued on April 1, 2023, and 257500 more on July 1, 2023. On October 1, 2023, Culver issued 10000, $1000 par value, 8% convertible bonds. Each bond is convertible into 20 common shares. No bonds were converted in 2023. What is the number of shares to be used in calculating 2023 basic earnings per share and diluted earnings per share, respectively? O 3514000 and 3771500 O 3514000 and 3564000 O 3771500 and 4286500 3514000 and 3514000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...

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On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.
Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?
Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
at December 31, 2020, Proof Company had 450 000 shares of ordinary shares outstanding. On September 1, 2021, an additional 150 000 shares of ordinary shares were issued. in addition, Proof had P10 000 000 of 6% convertible bonds outstanding at December 31, 2020, which are convertible into 300,000 shares of ordinary shares. the carrying value of the bonds as of December 31, 2020 and based on a rate of 8% is P9 205 800. no bonds were converted into ordinary shares in 2021. the net income for the year ended December 31, 2021 was P3 750 000. assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2021 of Proof Company?a.5.20b.5.44c.5.31d.7.50
Bonita Industries, has 4230000 shares of common stock outstanding on December 31, 2020. An additional 803000 shares of common stock were issued on April 1, 2021, and 391000 more on July 1, 2021. On October 1, 2021, Bonita issued 19000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively? A. 5027750 and 5122750 B. 5027750 and 5422750 C. 5027750 and 5027750 D.
Sunland Company, has 4170000 shares of common stock outstanding on December 31, 2020. An additional 803000 shares of common stock were issued on April 1, 2021, and 393000 more on July 1, 2021. On October 1, 2021, Sunland issued 19800, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?
XYZ Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000 ordinary shares were issued on April 1, 2020, and 400,000 ordinary shares more on July 1, 2020. On October 1, 2020, XYZ Inc. issued 20,000, P1,000 face value, 8% convertible bonds. Each bond is convertible into 20 ordinary shares. No bonds were converted into ordinary shares in 2020. What is the number of shares to be used in computing basic EPS and diluted EPS, respectively? A. 4,400,000 and 4,400,000B. 4,400,000 and 4,500,000C. 4,400,000 and 4,800,000D. 4,800,000 and 5,600,000
XYZ Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000 ordinary shares were issued on April 1, 2020, and 400,000 ordinary shares more on July 1, 2020. On October 1, 2020, XYZ Inc. issued 20,000, P1,000 face value, 8% convertible bonds. Each bond is convertible into 20 ordinary shares. No bonds were converted into ordinary shares in 2020. What is the number of shares to be used in computing basic EPS and diluted EPS, respectively? A. 4,400,000 and 4,400,000 B. 4,400,000 and 4,500,000 C. 4,400,000 and 4,800,000 D. 4,800,000 and 5,600,000 E. answer not given
The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Ordinary Share Capital, P2 par value, 1,000,000 shares authorized, 177,580…
On January 1, 2018 Orion Company Limited had 7,00,000 shares to continue its business.On April 1, 2018 the company issued an additional 3,00,000 shares for cash . All10,00,000 shares were outstanding on December 31.2016. Orion Company Limited alsoissued Tk.7,00,000 of 20 years 8% convertible bonds at par on August 1,2018 . EachTk.1000 bond converts to 50 shares common at any interest date. None of the bonds havebeen converted to date. Orion Company Limited is preparing its annual report for thefiscal year ending December 31, 2018. The annual report will show earnings per sharesending figures based upon a reported after tax net income of Tk.15,40,000 ( The tax rateis 30%)Required: Compute the Basic earnings per share & Diluted earnings per share.
The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Ordinary Share Capital, P2 par value, 1,000,000 shares authorized, 177,580…