
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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MIRANA Co. owes P150,000 loan payable to RIKIMARU UNIVERSAL BANK as of June 30, 2014. RIKIMARU accepted 20,000 shares of MIRANA as full payment of the loan. At this date the shares are selling at P6 per share. The share has P5 par value based on the share records. By what amount would the shareholder’s equity change as a result of the issuance of shares to RIKIMARU.
A. P150,000 decrease
B. P120,000 decrease
C. P120,000 increase
D. P100,000 increase
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- Do not use Aiarrow_forwardPlease explain in detailarrow_forwardThe following information relates to Rose plc for the year ended 31 December 2019: £,000 Turnover Operating costs Trading profit Net interest payable Exceptional charges Tax expenses Profit after tax 700 476 224 2 222 77 145 66 79 Rose plc had 100,000 ordinary shares of £1 each in issue throughout the year. Rose plc has in issue warrants entitling the holders to subscribe for a total of 50,000 shares in the company. The warrants may be exercised after 31 December 2025 at a price of £1.10 per share. The average fair value of shares was £1.28. The company had paid an ordinary dividend of £15,000 and a preference dividend of £9,000 on preference shares classified as equity. Required: Calculate the basic EPS for Rose plc for the year ended 31 December 2019, in accordance with best accounting practice. Calculate the diluted EPS figure, to be disclosed in the statutory accounts of Rose plc in respect of the year ended 31 December 2019. Briefly…arrow_forward
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