INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946694
Author: GORDON
Publisher: RENT PEARS
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Chapter 20, Problem 20.3P
Computing Basic and Diluted EPS. Convertible Bonds, Convertible Preferred Stock, Disclosures. Daphne Company provided the following share information for the current year. Daphne reported income from continuing operations of $1,100,000 and a $450,000 loss from discontinued operations net of tax. The company is subject to a 40% tax rate.
| Event and Date | Number of Shares |
| 1/1 Beginning balance | 150,000 |
| 5/1 New share issue | 345,000 |
| 7/1 Two-for-one stock split | |
| 10/1 New share issue | 300,000 |
| 12/1 |
(120,000) |
Daphne has $400,000 3% convertible debt outstanding as of the beginning of the year. The debt was issued at par. Each $1,000 par
Required
- a. Compute basic and diluted earnings per share for income from both continuing operations and net income Show all computations
- b. Prepare all required disclosures beginning with income from continuing operations.
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Problem 20-14 (IAA)
During the year, the entity declared and paid P1,000,000 cash
dividend on the ordinary shares and P800,000 cash dividend
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Year was P6,500,000.
share?
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b. 3.25
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d. 2.25
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633
DDD Company had the following ordinary share transactions for the current year:
January 1
Beginning balance, 120,000 shares, P50 par
June 1
Issued 12,000 shares at P60 per share
September 30
Purchased 24,000 shares at P55 per share to be held as treasury
The entity reported net income of P3,630,000, after an expropriation loss of P605,000 for the current year.
Questions:
1. Compute for the average shares outstanding.
2. Compute for the basic earnings per share.
Reporting Stockholders' Equity
Bonner Company began business this year and immediately sold 500,000 common shares for $13,500,000 cash and paid $750,000 in common dividends. At midyear, the firm bought back some of its own shares. The company reports the following
additional information at year-end:
Net income
Unrealized gain on available-for-sale debt securities
Common stock, at par
Retained earnings beginning of year
Common shares authorized
Common shares outstanding at year's end
$3,750,000
$66,000
$5,000,000
$0
750,000
425,000
a. What was the average sales price of a common share when issued? Round to two decimal places.
$ 27
per share
b. What is the par value of the common shares?
$ 10
per share
c. How much is in the Additional paid-in capital account at the end of the year?
$ 8,500,000
d. How much is in accumulated other comprehensive income (loss) at the end of the year?
$ (1,175,000)
e. Determine the retained earnings amount at the end of the year.
$ 3,000,000
f. How many…
Chapter 20 Solutions
INTERMEDIATE ACCOUNTING
Ch. 20 - Prob. 20.1QCh. 20 - Prob. 20.2QCh. 20 - If-Converted Method. Does the if-converted...Ch. 20 - Diluted EPS. If all potentially dilutive...Ch. 20 - Diluted EPS. Can diluted earnings per share on...Ch. 20 - Diluted EPS, Convertible Debt, and Preferred...Ch. 20 - Prob. 20.7QCh. 20 - Prob. 20.8QCh. 20 - Prob. 20.9QCh. 20 - EPS Disclosures. is an entity required to present...
Ch. 20 - Prob. 20.11QCh. 20 - Hutchins Company had 200,000 shares of common...Ch. 20 - Prob. 20.2MCCh. 20 - Prob. 20.3MCCh. 20 - Prob. 20.4MCCh. 20 - Refer to the information about Hutchins Company in...Ch. 20 - Prob. 20.6MCCh. 20 - Prob. 20.1BECh. 20 - Prob. 20.2BECh. 20 - Computing Income for Basic EPS. Russo Watches, Ltd...Ch. 20 - Prob. 20.4BECh. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Prob. 20.7BECh. 20 - Prob. 20.8BECh. 20 - Prob. 20.9BECh. 20 - Prob. 20.10BECh. 20 - Prob. 20.11BECh. 20 - Computing Basic and Diluted EPS, Options. Nicks...Ch. 20 - Computing Diluted EPS, Convertible Debt. Axelon...Ch. 20 - Computing Basic and Diluted EPS, Preferred Stock....Ch. 20 - Computing Weighted-Average Number of Common Shares...Ch. 20 - Prob. 20.3ECh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.5ECh. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Options,...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.12ECh. 20 - Prob. 20.1PCh. 20 - Prob. 20.2PCh. 20 - Computing Basic and Diluted EPS. Convertible...Ch. 20 - Prob. 20.4PCh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.7PCh. 20 - Prob. 20.8PCh. 20 - Prob. 1JCCh. 20 - Prob. 1FSCCh. 20 - Prob. 1SSCCh. 20 - Basis for Conclusions Case 1: Antidilutive...Ch. 20 - Basis for Conclusions Case 2: Treasury Stock...
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