(b)Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of theconvertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.)Basic EPSeTextbook and MediaSave for LaterAttempts: 0 of 3 used Submit Answer Bonita Inc. had 502,000 common shares outstanding for the entire fiscal year ended August 31, 2023. Bonita also had 106,000 $3cumulative, no-par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year to purchase30,000 common shares at $17 per share. The average market price of Bonita's common shares during the year ended August 31, 2023was $25 per share. The options expire in 2032, and none were actually exercised during the current year. Also outstanding for theentire year was a 7% bond with a face value of $4,600,000, convertible to 115,000 common shares. Bonita Inc.'s net income for theyear was $2,702,500, and the income tax rate for the fiscal year was 40%.(a)Your answer is correct.Calculate the income effect of the dividends on the preferred shares.Dividends on preferred shareseTextbook and MediaLA318000Attempts: 1 of 3 used

Basic earnings per share (EPS) is a rough measurement of the amount of a company's profit that can…

Answered: Calculate basic earnings per share.…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 8QE

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1. How is the exchange of common stock for long-term term debt shown on the SCF? 2. How does the sum of the cashflow from the three major classifications on the scf relate to the change in balance sheet accounts from two successive balance sheets?
A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: C . reported as supplementary information to the cash fl ow statement.
A balance sheet that displays only component percentages is a a.comparative balance sheet. b.condensed balance sheet. c.common-sized balance sheet. d.trend balance sheet. If the straight-line method of amortization of bond premium or discount is used, which of the following statements is true? A. Annual interest expense will remain the same over the life of the bonds with the amortization of bond discount. B. Annual interest expense will increase over the life of the bonds with the amortization of bond discount. C. Annual interest expense will decrease over the life of the bonds with the amortization of bond discount. D. Annual interest expense will increase over the life of the bonds with the amortization of bond premium. A statement of cash flows would be least useful in answering which of the following questions? Double-click on the box below to edit your answer choices. A.Cash used to purchase equipment B.Change in total expenses C.cash provided from sale of stock
Which of the following would be included in the journal entry to show the conversion of bonds payable with additional consideration (a 'sweetener ' to encourage bondholders to sell their bond back )? (NIE 13) A debit to conversion expense debit to common stock A debit to cash A debit to bond discount
Given that a bond's carrying value is $185,000 and the fair value is $183,000, what is the journal entry to record the unrealized holding gain? Would it be a debit or credit to unrealized holding gain? Likewise, if this was a loss, would it be debit or credit to unrealized holding loss? Thanks!
Computalog Inc. showed the following on its December 31, 2023, balance sheet: Bonds payable, convertible $ 4,040,000 Less: Unamortized discount 14,544 $ 4,025,456 Required: 1. Assuming the bonds are convertible into 404,000 common shares, journalize the conversion on January 1, 2024, when the market value per common share was $10.25. 2. How will the conversion of bonds into common shares affect the elements of the balance sheet (assets, liabilities, equity)?
For each of the unrelated transactions described below, present the entry required to record the bond transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) 1. On August 1, 2021, Wildhorse Corporation called its 10% convertible bonds for conversion. The $6,600,000 par bonds were converted into 264,000 shares of $20 par common stock. On August 1, there was $660,000 of unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share. Ignore all interest payments.2. Sandhill, Inc. decides to issue convertible bonds instead of common stock. The company issues 10% convertible bonds, par $2,900,000, at 97. The investment banker indicates that if the bonds had not been convertible they would have sold at 94.3. Gomez Company issues $7,800,000 of bonds with a coupon…
1. Which of the following statements regarding bonds payable is true? a.The entire principal amount of most bonds matures on a single date. b.When an issuing company's bonds are traded in the secondary market, the company will receive part of the proceeds when the bonds are sold from the first purchaser to the second purchaser. c.A debenture bond is backed by specific assets of the issuing company. d.Generally, bonds are issued in denominations of $100.
Which of the following statements is true regarding diluted earnings per share? Select one: a. Contingently issuable shares are considered outstanding in the computation of diluted EPS when any conditions for issuance are currently being met. b. To incorporate convertible bonds into the calculation, the denominator of the EPS fraction is decreased by the additional common shares assumed. c. It is assumed that stock options are exercised at the beginning of the period (or at the time the options are issued, if later) and the cash proceeds received are used to buy back (as treasury stock) as many of those shares as can be acquired at the closing market price for the period. d. To incorporate convertible securities into the calculation, the numerator is decreased by the interest (after-tax) that would have been avoided in the event of conversion.
Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and accounts receivable C. retained earnings and paid-in capital D. discounts and premiums on bond payable
Can you help explain the computations on this problem: E. Corp issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrent. After issuance, the bonds were selling in the market at 98, and the warrents had a market price of $40. Use the proportional method to record the issuance of bonds and warrents. Thanks,
When the conversion of bonds payable to common stock is recorded under the market value method and the market value of the common stock exceeds the book value of the bonds at date of conversion, the difference is recorded as a debit to Loss on Conversion. debit to Additional Paid-in Capital−Common Stock. debit to Discount on Bonds Payable. debit to Retained Earnings.

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Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS $