ChecExercise 19-21 (Static) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9]Information from the financial statements of Ames Fabricators, Inc., included the following:December 312021100,0002020100,000Common sharesConvertible preferred shares (convertible into 32,000shares of common)88 convertible bonds (convertible into 30,000 shares ofcommon)12,00012,000$1,p00,000$1,000,000Ames's net income for the year ended December 31, 2021, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 pershare on its preferred stock during 2021.Required:Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (Forexample, 100,000 should be entered as 100). Do not round intermediate calculatlons.)NumeratorDenominatorEarnings per ShareBasic1.%3DDiluted8 of 18Next >

Earnings per share is the earnings of the business that is being earned by the each shareholder.…

Answered: Exercise 19-21 (Static) EPS;…

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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29/4/2021 https://translate.googleusercontent.com/translate_f P12-14 Share repurchase : The following financial information is available on the Bond Recording Company: Earnings available to $ 800,000 common shareholders Number of common shares outstanding 400,000 Earnings per share ($ 800,000 +400,000) $ 2 Market price per share $ 20 Price / Earning Ratio (P / E) ($ 20 + $ 2) 10 The company is currently contemplating whether to use $ 400,000 of its earnings to pay cash dividends of $ 1 per share or to buy back shares at $ 21 per share. About how many shares can the company buy back at the price of $ 21 per share using the funds that would be used to pay the dividend in cash? а. b. Calculate EPS after repurchase. Explain your calculations. С. If the shares are sold at a price 10 times higher than the earnings, what will the market price be after the buyback? Compare the positions of the shareholders under the dividend payment and share buyback alternatives. What are the tax implications…
Required - In accordance with IAS 33 Earnings per share 3. Compute basic earnings per share for 2019 b. Compute diluted earnings per share for 201 c. State the Presentation and Disclosure requirements i The information below pertains to Rainfall ple for 2019. Net Income for the year 8% convertible bonds issued at par ($1,000 per bond); $2,000,000 each bond is convertible into 30 shares of ordinary shares; the liability component of the bonds is $1,800,000 based on a market rate of 9% 6% convertible, cumulative preference shares, $100 par value; each share is convertible into 3 shares of ordinary shares. Ordinary shares, $10 par value Tax rate for 2019 $1,200,000 $4,000,000 $6,000,000 40% Average market price of ordinary shares $25 per share
Problem 7-6 (IAA) Kareń Company showed the following accounts on December 31, 2020. 5,000,000 250,000 Bonds payable Premium on bonds payable Share capital – 250,000 shares authorized and 200,000 shares issued, P50 par Share premium -issuance Share premium - conversion privilege Retained earnings 10,000,000 2,000,000 500,000 2,500,000 The bonds are convertible into 10 shares of capital for every P1,000 bond. On December 31, 2020, the entire bond issue was converted and on this date, the market value of the share is 120 and the market value of the bonds is 103. The entity paid P200,000 as a result of the bond conversion. Required: Prepare journal entries for the conversion of the bonds on December 31, 2020.
Check my work Problem 19-18 (Static) EPS; stock options; nonconvertible preferred; convertible bonds; shares sold (LO19-4, 19-5, 19-6, 19-7, 19-8, 19-9] At January 1, 2021, Canaday Corporation had outstanding the following securitles: 600 million common shares 20 million 6% cumulative preferred shares, $50 par 6.4% convertible bonds, $2,000 million face amount, convertible into 80 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. • Incentive stock options to purchase 60 million shares of common stock after July 1, 2020, at $12 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $18 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $1,476 million. The effective income tax rate was 25%. Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended…
Computing Diluted EPS: Convertible Bonds and Convertible Preferred Stock Jones Corporation's capital structure follows. December 31 2020 Outstanding shares of stock Common stock, outstanding shares 154,000 Convertible preferred stock, outstanding shares 14,000 8% Convertible bonds $1,400,000 During 2020, Jones declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible in 28,000 shares of common stock. The 8% bonds are convertible into 42,000 shares of common stock. Net income for 2020 is $1,360,000. Assume that the income tax rate is 25%. Required a. Compute basic EPS for 2020. b. Compute diluted EPS for 2020. Note: Round earnings per share amounts to two decimal places. Net Income Available toCommon Stockholders Weighted Avg. CommonShares Outstanding PerShare Basic EPS Answer Answer Answer Diluted EPS Answer Answer Answer
Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9] Information from the financial statements of Ames Fabricators, Inc., included the following: Common shares Convertible preferred shares (convertible into 34,000 shares of common) 10% convertible bonds (convertible into 20,000 shares of common) Basic EPS Diluted EPS Numerator 1 1 1 Denominator = Ames's net income for the year ended December 31, 2018, is $520,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018. = December 31 Required: Compute basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in thousands.) = 2018 100,000 Earnings per Share 13, 200 $1,000,000 2017 100,000 13, 200 $1,000,000
Problem 21-3 (AICPA Adapted) Amaze Company reported the following information at year-end: Ordinary shares outstanding Nonconvertible preference outstanding shares 10% convertible bonds payable- face amount 1,000,000 1,000,000 2021 2020 360,000 10,000 300,000 10,000 The entity provided the following additional information: On September 1, 2021, the entity sold 60,000 additional ordinary shares. Net income for the year ended December 31, 2021 was P6,700,000. %23 During 2021, the entity paid dividends of P30 per share on the nonconvertible preference share. The 10% convertible bonds are convertible into 40 ordinary shares for each P1,000 bond. Unexercised share options to purchase 30,000 ordinary shares at P20 per share were outstanding at the beginning and end of 2021. %23 The average market price of ordinary share was P30 during 2021. The market price was P40 on December 31, 2021. Warrants to purchase 20,000 ordinary shares at P45 per share were attached to the preference share at the…
AB Co issues 5.000 50c shares for $6.000. Required: What are the amounts for share capital and share premium in the statement of financial position?
h. 2. What amount should be reported as básic EPS for 2021 Problem 19-16 (AICPA Adapted) 10 fo Strauch Company had one class of share capital outstanding and no other securities that are potentially convertible into ordinary shares. During 2021, 120,000 shares were outstanding. a. b. On April 1, 2022, 40,000 shares of treasury were sold, and on July 1, 2022, a 2-for-1 share split was issued. C. d. Net income was P6,000,000 in 2022 and P3,600,000 in 2021. Pr 1. What amount should be reported as basic EPS for 2022 Du 20 sh. in the 2022 comparative income statement? a. 25.00 b. 20.00 c. 18.75 d. 37.50 P3 pa WE in the 2022 comparative income statement? a. a. 30,00 b. 15.00 C. 45.00 d. 22.50 b. C. d. 602
Required information E11-4 (Algo) Reporting Stockholders' Equity LO11-1, 11-2, 11-3 [The following information applies to the questions displayed below.] The financial statements for Highland Corporation included the following selected information: Common stock $1,010,000 $ 770,000 $1,080,000 101,000 75,000 650,000 Retained earnings Net income Shares issued Shares outstanding Dividends declared and paid The common stock was sold at a price of $31 per share. E11-4 Part 3 3. How many shares are in treasury stock? of 10 Nexily> Prey
Required information E11-4 (Algo) Reporting Stockholders' Equity LO11-1, 11-2, 11-3 [The following information applies to the questions displayed below.] The financial statements for Highland Corporation included the following selected information: Common stock $1,010,000 $ 770,000 $1,080,000 Retained earnings Net income Shares issued Shares outstanding Dividends declared and paid 101,000 75,000 $ 650,000 The common stock was sold at a price of $31 per share. E11-4 Part 2 2. What was the amount of retained earnings at the beginning of the year? Retained earnings Next Dro
aved Required information E11-4 (Algo) Reporting Stockholders' Equity LO11-1, 11-2, 11-3 [The following information applies to the questions displayed below.] The financial statements for Highland Corporation included the following selected information: Common stock $1,010,000 $ 770,000 $1,080,000 101,000 75,000 $ 650,000 Retained earnings Net income Shares issued Shares outstanding Dividends declared and paid The common stock was sold at a price of $31 per share. E11-4 Part 4 4. Compute earnings per share. (Round your answer to 2 decimal places.)

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