[EPS] COMPUTING EPS WITH CONVERTIBLE DEBENTURES Pam Corporation has $ 108,000 income from its own operations for 2016. And $42,000 income from Sun Corporation, its 70 percent-owned subsidiary. Sun's net income of $60,000 consists of $66,000 operating income less $ 6,000 net-of tax interest on its outstanding 10 percent convertible debentures. Throughout 2016, Pam has 100,000 shares of common stock outstanding, and Sun has 50,000 outstanding common shares. REQUIRED: 1.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Sun's common stock. 2.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Pam's common stock.

[EPS] COMPUTING EPS WITH CONVERTIBLE DEBENTURES Pam Corporation has $ 108,000 income from its own operations for 2016. And $42,000 income from Sun Corporation, its 70 percent-owned subsidiary. Sun's net income of $60,000 consists of $66,000 operating income less $ 6,000 net-of tax interest on its outstanding 10 percent convertible debentures. Throughout 2016, Pam has 100,000 shares of common stock outstanding, and Sun has 50,000 outstanding common shares. REQUIRED: 1.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Sun's common stock. 2.Compute Pam's diluted earnings per share for 2016, assuming that Sun's bonds are convertible into 10,000 shares of Pam's common stock.

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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Jean Company own 90% Equity of Lars Company in December 31, 2016, is shown as follows: Jean Lars Common Stock $10.000 S Retained Earnings 800.000.000 S 300.000.000S 1.100.000.000S 640.000.000 250.000.000 Total 890.000.000 Jean Company's investment account as of this date is equal to its book value. On January 1, 2017, Lars Issued 25.000 new shares at $14.000 per share Question: 1. Calculate the precentage owned by Jean in Lars if the 25.000 shares were purchased entirely by Lars. 2. Calculate the precentage owned by Jean in Lars if the 25,000 new shares are purchased entirely by the public. 3. If the 25,000 new shares were purchased entirely by public, prepare the journal entries required by Jean Company to calculate the effect of Jean Investment in Lars. Assuming no gain or loss is recognized.
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12. An analysis of equity of EFG Corporation as of January 1, 2015, is as follows: Share capital—ordinary, par value P20; authorized 100,000 shares; issued and outstanding 90,000 shares P1,800,000 Share premium—ordinary 900,000 Retained earnings 760,000 Total P3,460,000 EFG uses the cost method of accounting for treasury shares and during 2015 entered into the following transactions: Acquired 2,500 of its shares for P75,000. Sold 2,000 treasury shares at P35 per share. Sold the remaining treasury shares at P20 per share. Assuming no other equity transactions occurred during 2015, what should EFG report at December 31, 2015, as total share premium?
6. On 30 June 2017, two-third of the shares of SIC Ltd. (with a total capital of $ 4.800.000) was acquired by HOR Ltd. the Balance Sheet of SIC Ltd. showed a debit balance of $ 2.400.000 on 1st January 2017 and a credit balance of $ 1.440.000 on 31 December 2017. The investment by HOR Ltd. in shares of SIC Ltd. Is $ 3.600.000. Calculate the cost of control or capital reserve. (a) 720000 (b) 620000 (c) 360000 (d) 180000 7. Cash payments to and on behalf of employees is an example of: (a) Cash flow from Operating activities (b) Cash flow from Investing activities (c) Cash flow from Financing activities (d) None of the above 8.Financial Reporting Council is an organisation of which country? (a) The USA (b) The UK (c) Australia (d) Canada
32. During 2013, O Company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2013 were as follows: Security A 1,000 shares B 10,000 shares C 20,000 shares Cost Market value 300,000 1,700,000 3,150,000 350,000 1,550,000 2,950,000 The entity sold 10,000 shares of B on January 5, 2014 for P150 per share and incurred P50,000 in brokerage commission and taxes. What amount should be reported as loss on sale of equity securities in 2014? a. 200,000 b. 100,000 c. 250,000 d. 50,000
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Investment in Equity Kalvin Co. acquired 15% of the 5,000,000 shares of common stock of Tops Co. at a cost of $8.50 per share on January 1, 2017. Tops Co. declared and paid a $250,000 cash dividend and reported net income of $685,000 for the year. On January 2, 2018, Kalvin sold these shares at a market price of $9.00 per share. Required: Prepare all necessary journal entries for 2017 and 2018.
Required information [The following information applies to the questions displayed below.] On January 2, 2024, Sanborn Tobacco Incorporated bought 5% of Jackson Industry's capital stock for $92 million. Jackson Industry's net income for the year ended December 31, 2024, was $122 million. The fair value of the shares held by Sanborn was $102 million at December 31, 2024. During 2024, Jackson declared a dividend of $62 million. 2. Assume that Sanborn sold the stock on January 2, 2025 for $114 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet
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14. PQ Corporation has 50,000 shares of P10 par ordinary shares authorized. The following transactions took place during 2015, the first year of the corporation’s existence: Sold 5,000 ordinary shares for P18 per share. Issued 5,000 ordinary shares in exchange for a patent valued at P100,000. At the end of the PQ’s first year, total contributed capital amounted to?
15. Rock Company reported the following shareholders equity on December 31, 2022: Share capital, P50 par value 3,000,000 Share premium 600,000 Retained earnings 4,200,000 A 15% share dividend was declared and distributed on December 31, 2022 when entity’s share was selling at P65. What amount should be reported as share capital outstanding? Group of answer choices 3,450,000 3,585,000 3,615,000 4,185,000
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