(Computation of Basic and Diluted EPS) The information below pertains to Payson Company for 2021. Net income for the year6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into60 shares of common stock4% convertible, cumulative preferred stock, $100 par value; each share is convertibleinto 4 shares of common stockCommon stock, $1 par valueTax rate for 2021Average market price of common stock$8,670,0005,000,0002,500,0009,500,00020%$18 per shareThere were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. Thereis no treasury stock. The company also has common stock options (granted in a prior year) to purchase 120,000 shares of com-mon stock at $12 per share.Instructions(a) Compute basic earnings per share for 2021.(b) Compute diluted earnings per share for 2021.

The portion of a company's profit that is allocated to each share of stock is known as earnings per…

Answered: Net income for the year 6% convertible…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 20E

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Current Attempt in Progress The information below pertains to Crane Company for 2021. Net income for the year $1.210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,990,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 3,860,000 Common stock, $10 par value 5,880,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 72,400 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, eg. $2.55.) Basic earnings per share $ (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, eg. $2.55.) Diluted earnings per share
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
37 A company issues a $1,000 bond that is convertible into 100 shares of common stock with a par value of $1. At conversion, the Accumulated Discount on Bonds Payable is $100. What information should be included in the journal entry for the conversion? Debit Bonds Payable for $1,000 Credit Common Stock for $1,000 Credit Paid-in Capital in Excess of Par-Common Stock for $100 O Debit Discount on Bonds Payable for $100 NEXT > BOOKMARK
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.
Current Attempt in Progress The information below pertains to Windsor Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) $1,210,00 1,970,00 Diluted earnings per share $ 4,200,00 5,820,00 There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at $20 per share. a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) 20% $25 per shar
Airways common stock is currently priced at $39. its 8 percent convertible debentures issued at their $1,000 par and are currently priced at $1,050. Each debenture can be converted into 25 shares of common stock at any time before 2010. What is the conversion value of the bond? a. $1,000 b. $975 c. $900 d. $1,050
Conversion (or stock) value What is the conversion (or stock) value of each of the following convertible bonds? A $1,000-par-value bond that is convertible into 100 shares of common stock. The common stock is currently selling for $10.50 per share?
Conversion (or stock) value What is the conversion (or stock) value of each of the following convertible bonds? B. A $1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for $42 per share?
Convertible Bonds Instructions Chart of Accounts General Journal X Instructions On January 1, 2018, when its $30 par value common stock was selling for $60 per share, a corporation issued $30 million of 12% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation’s $30 par value common stock. The debentures were issued for $31 million. At the time of issuance, the present value of the bond payments was $28.50 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2019, the corporation’s $30 par value common stock was split 3 for 1. On January 1, 2020, when the corporation’s $10 par value common stock was selling for $70 per share, holders of 40% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method…
Recording Entries for Convertible Bonds Stonewall Corporation issued $56,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock (par $50) of Stonewall Corporation. The bonds were sold at 105 on January 1, 2020. Required a. Provide the entry for Stonewall Corporation on January 1, 2020, for the bond issuance. b. Provide entries for Stonewall Corporation assuming that the conversion privilege is subsequently exercised immediately after the end of the third year. Assume that at the date of conversion, 30% of any premium or discount has been amortized and the common stock was selling at $350 per share. Use the book value method. Note: List multiple debits or credits (when applicable) in alphabetical order.
Problem 7-8 Karen Company showed the following accounts on December 31, 2020. Bonds payable 5,000,000 Premium on bonds payable 250,000 Share capital-250,000 shares authorized and 200,000 shares issued, P50 par 10,000,000 Share premium-issuance 2,000,000 Share premium-conversion privilege 500,000 Retained earnings 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.
Please answer the requirements Bay Company had P600,000, convertible 8% bonds payable outstanding on June 30. Each P1,000 bond was convertible into 1 ordinary shares of P50 par value. On July 1, the interest was paid to bondholders, and the bonds were converted into ordinary shares, which had a fair value of P75 per share. The unamortized premium on these bonds was P12,000 at the date of conversion. No equity component was recognized when the bonds were originally issued. Requirements What amount should be recorded as increase in share capital as result of the bond conversion? What amount should be recorded as increase in share premium as a result of the bond conversion?

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