Entity A had the following instrumentsoutstanding all throughout 20x1:12%convertible bonds payable issued at faceamount, each P1,000 bond is convertibleinto 30 ordinary sharesP2,000,000Ordinary shares, P10 par,100,000 shares issued and outstanding1,000,000Profit for the year is P1,200,000.Entity A's income tax rate is 30%.What is thediluted earnings per share in 20x1? *O 8.558.15O 8.05O 8.98

Name: Entity A had the following instrumentsoutstanding all throughout 20x1
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Description: Entity A had the following instrumentsoutstanding all throughout 20x1:12%convertible bonds payable issued at faceamount, each P1,000 bond is convertibleinto 30 ordinary sharesP2,000,000Ordinary shares, P10 par,100,000 shares issued and outstanding1,

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Entity A had the following instruments outstanding all throughout 20x1:12% convertible bonds payable issued at face amount, each P1,000 bond is convertible into 30 ordinary shares P2,000,0000rdinary shares, P10 par, 100,000 shares issued and outstanding 1,000,000Profit for the year is P1,200,000. Entity A's income tax rate is 30%.What is the diluted earnings per share in 20x1? * 8.55 O 8.15 O 8.05 O 8.98

Entity A had the following instruments outstanding all throughout 20x1:12% convertible bonds payable issued at face amount, each P1,000 bond is convertible into 30 ordinary shares P2,000,0000rdinary shares, P10 par, 100,000 shares issued and outstanding 1,000,000Profit for the year is P1,200,000. Entity A's income tax rate is 30%.What is the diluted earnings per share in 20x1? * 8.55 O 8.15 O 8.05 O 8.98

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2020, Blossom Ltd. issued 820 5-year, 11% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $6. Similar straight bonds carry an interest rate of 13%. Calculate the PV of the debt component by itself. Calculate using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel function PV. QUESTION: 1) PV of the debt component 2) How should Blossom record the issuance if it follows IFRS? Use the amount you arrived at in part (a) using a financial calculator or Excel. Date Account Titles and Explanation January 1 enter an account title enter an account title January 1 enter an account title Date Account Titles and Explanation enter an account title Debit 3) How should Blossom record the issuance if it follows ASPE? enter an account title enter a debit amount enter a credit amount Credit enter a debit amount enter a credit…
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