Levi Co. is calculating earnings per share for inclusion in the annual report to share holders. The entity obtained the following information from the controller's office: Net income from January 1 to December 31-P1,250,000 Number of shares outstanding January 1 to March 31 - 150, 000 April 1 to May 31 120,000 June 1 to December 31 - 180,000 In addition, the entity issued 100,000 incentive share options with an exercise price of P30 The year end market price was P25 per share and the average market price price was P20 per share What amount should be reported as diluted earnings per share?

Levi Co. is calculating earnings per share for inclusion in the annual report to share holders. The entity obtained the following information from the controller's office: Net income from January 1 to December 31-P1,250,000 Number of shares outstanding January 1 to March 31 - 150, 000 April 1 to May 31 120,000 June 1 to December 31 - 180,000 In addition, the entity issued 100,000 incentive share options with an exercise price of P30 The year end market price was P25 per share and the average market price price was P20 per share What amount should be reported as diluted earnings per share?

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 25P: The controller of Red Lake Corporation has requested assistance in determining income, basic...

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The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
The Financial controller at Think Inc. is currently preparing the calculation for earnings per share and the related disclosure for the firm's financial statements. The following information has been extracted from the firm's financial statements for the fiscal year ended June 30, 2021. * Share capital - preference, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shared issued and outstanding $1,250,000 * Share capital - ordinary, $1 par, 10,000 shares authorised, 1,000,000 shares issued outstanding $1,000,000 * Share premium - ordinary (includes any amounts for options and conversations) - $4,000,000 * Retained earnings - $6,000,000 * Notes payable, 10% - $1,000,000 * Convertible bonds payable - $5,000,000 * 10% bonds payable - $6,000,000 The following transactions have also occurred at Think. Options were granted on July 1, 2020, to purchase 200,000 shares at $15 per share. Although no options were exercised during the fiscal year 2021, the average price per ordinary…
Based on the following information of A & B SAOG calculate the amount of different categories of share capital and prepare an abstract of Balance sheet: The authorized capital of the company was OMR 2,000,000 divided into shares of OMR 1 each. The company already had in issue 800,000 shares fully paid up. In the year 2020 the company issued for subscription by the public 600,000 shares. 90% of the issued capital was subscribed by the public. The company called up for all the allotted shares in full. There was a failure of payment of call money from a shareholder holding 1,000 shares.
Charles Austin of the controller’s office of Skysong Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,320,000 shares of $10 par value common stock. As of December 31, 2020, 2,080,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as follows. Price per Share July 1, 2020 $20.00 January 1, 2021 21.00 April 1, 2021 25.00 July 1, 2021 11.00 August 1, 2021 10.50 November 1, 2021 9.00 December 31, 2021 10.00 3. A total of 732,000 shares of an authorized 1,272,000 shares of convertible preferred stock had been issued on July 1, 2020. The stock was issued at its par value of $25.00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the…
Charles Austin of the controller’s office of Skysong Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,320,000 shares of $10 par value common stock. As of December 31, 2020, 2,080,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as follows. Price per Share July 1, 2020 $20.00 January 1, 2021 21.00 April 1, 2021 25.00 July 1, 2021 11.00 August 1, 2021 10.50 November 1, 2021 9.00 December 31, 2021 10.00 3. A total of 732,000 shares of an authorized 1,272,000 shares of convertible preferred stock had been issued on July 1, 2020. The stock was issued at its par value of $25.00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the…
SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model. SLC Inc. prepares financial statements every quarter. At Sept 30, 2021, the end of the company’s third quarter, the following information was reported: Investment Cost Fair Value 50,000 Common Shares – Seneca Inc. $215,000 $200,000 3,500 Preferred Shares – Loyalist Inc. $135,000 $140,000 2,000 Common Shares – Algonquin Inc. $180,000 $179,000 Transactions that occurred in the fourth quarter: Oct 8, 2021 The Seneca Shares were sold for $4.30 per share Nov 16, 2021 3,000 common shares of Humber Inc. were purchased at $44.50 per share SLC Inc. pays a 1% commission on purchase and sales of all securities. At the end of the fourth quarter, on December 31, 2021, the fair value of the shares were as follows: Investment Fair Value Loyalist Inc. $106,000 Algonquin Inc. $203,000 Humber Inc. $122,000 Instructions: Prepare the journal entries to record the sale, purchase and…
At the beginning of the current year, BFAR Corp. was authorized to issue 100,000 shares with P50 par value. During the year, the company had the following chronological transactions related to shareholders' equity: • Issued 10,000 shares at P70 per share • Issued 20,000 shares at P80 per share Reported net income of P1,239,000 . Declared and paid cash dividends of P394,000 . Declared a 10% share dividend. Fair market value on this date is P105 per share. . Distributed the share dividend. Fair market value on this date is P90 per share. • Purchased 3,000 treasury shares at P100 per share How much is the total shareholders' equity at year-end? ●
At the beginning of the current year, Salonga Company was organized with an authorization of 1,000,000 ordinary shares with a par value of P10 per share. During the current year, the entity had the following share capital transactions: February 14 – Issued 500,000 shares at P20 per share March 10 – Reacquired 50,000 treasury shares at P15 per share August 25 – Reissued 30,000 treasury shares at P18 per share The entity used the cost method to record the reacquisition and reissuance of the treasury shares. What total amount should be reported as share premium at year-end? a. P5,240,000 b. P5,090,000 c. P5,000,000 d. P5,400,000
Template Company provided the following concerning marketable equity securities held as "trading." 1. The entity carried the following securities on December 31, 2022: 2. On June 30, 2023, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2023, the securities are quoted as follows: A ordinary - 4,000 shares B ordinary - 1,000 shares C preference - 2,000 shares A ordinary - 4,000 shares C preference -2,000 shares Requirement: Complete the table below. Write zero (0) if it is not applicable. Statement of Financial Position Investments - FVPL Statement of Changes in Equity Retained earnings Statement of Income Unrealized gain/(loss) Realized gain/(loss) Acquisition Date [a] [d] [9] 0] Cost 330,000 200,000 300,000 830,000 Market P80 per share P180 per share December 31, 2022 300,000 160,000 310,000 770,000 [b] [e] [h] [k] December 31, 2023 [c] [U] 0 [0]
Alpha company reported the following equity accounts on January 1, 2020. Share capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings, P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31, the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?
At the beginning of current year, CFAS Company was organized and authorized to issue 100,000 shares with P50 par value. During the current year, the entity 1 had the following: transactions relating to shareholders equity: Issued 10,000 http://shares.at P70 per share.Issued 20,000 shares at P80 per share.Reported net income of P 1,000,000.Paid dividends of P200,000.Purchased 3,000 treasury shares at P100 per share. 1.What amount should be reported as share capital at year – end?A. 1,200,000B. 3,300,000C. 1,500,000D. 1,800,000 2.What amount should be reported as share premium at year – end?A. 800,000B. 200,000C. 0D. 600,000 3. What is the total shareholders’ equity at year-end?A.2,800,000B.3,300,000C.3,000,000D. 2,000,000 4. What is the contributed capital at year – end?A. 2,000,000B. 2,300,000C. 3,000,000 D.1,500,000 I NEED ANSWER ASAP. THANK YOUUU!
At the beginning of current year, BFAR Company was organized and authorized to issue 100,00 shares with P50 par value. During the current year, the entity had the following transactions relating to Shareholders' Equity • Issued 10,000 shares at P70 per share • Issued 20,000 shares at P80 per share Purchased 1,000 Treasury shares at P100 per share. Reported net income of P1,000,000. • Declared cash dividends of P200,000. ● Compute the total Shareholders' Equity at year-end. 7,200,000 O 8,000,000 O2,200,000 O 3,000,000