Determine the basic earnings per share

Assignment Help Accounting Basics
Reference no: EM131929468

Question - Penguin Ice Inc. was formed on June 30, 2012, through the merger of Penguin Corp. and Ice Inc. Penguin Ice issued a total of 2,500,000 shares of common stock to owners of the merged companies. The new company had the following transactions during 2014.

On April 1, 2014, the company issued an additional 600,000 shares of stock for cash. On July 1, 2014, Penguin Ice issued $1 million of 15-year, 5% convertible bonds at par. Each $1,000 bond converts to 25 shares of common at any interest date. None of the bonds have been converted to date. Penguin Ice is preparing its annual report for the fiscal year ending December 31, 2014, and will report after-tax net income of $13,800,000. The tax rate is 30%.

Instructions

Determine the following for 2014.

(a) The number of shares to be used for calculating:

(1) Basic earnings per share.

(2) Diluted earnings per share.

(b) The earnings figures to be used for calculating:

(1) Basic earnings per share.

(2) Diluted earnings per share.

Reference no: EM131929468

Questions Cloud

What apr rate should you charge your customers : What APR rate should you charge your customers? As a jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly.
Test an appropriate hypothesis and state conclusion : Test an appropriate hypothesis and state your conclusion. (Make sure to check any necessary conditions and to state a conclusion in the context of the problem.)
Advanced structural analysis and design : ENS 5147 Advanced structural analysis and design - Develop skills for FE mesh generation and refinement; FEA including specifying material properties
Government bond to that of buying corporate bond : Compare the risk of buying a U.S. government bond to that of buying a corporate bond.
Determine the basic earnings per share : On April 1, 2014, the company issued an additional 600,000 shares of stock for cash. Determine the Basic earnings per share
What is the expected return on portfolio : What should the price of the stock be if instruments of similar risk are paying 12%? What is the expected return on a portfolio which is 120% in GE and -20% in
Confidence interval for the population mean : The sample mean is found to be x overbar equals x=120.9 and the sample standard deviation is found to be s equals s=13.2.
Prepare entry to record the issuance of bonds and warrants : On May 31, 2013, Core Company issued 1,000, 14%, 10-year $1,000 bonds at 106. Prepare the entry to record the issuance of the bonds and warrants
Find information online about price of homes in community : Find information online about the price of homes in your community. Are they going up, staying the same, or going down, and why?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Generation of accounting packages

Even if you cannot get access to such a package, try to get hold of one of the newer generation of accounting packages, such as Quicken or Money, which are aimed at use in the small business, or for domestic accounting.

  Review exercise calculate net income

Review exercise calculate net income. At the beginning of the current fiscal year, the balance sheet of Cummings Co.

  Pierres hair salon is considering opening a new location in

pierres hair salon is considering opening a new location in french lick california. the cost of building a new salon is

  Discuss what amount of gross profit should it recognize

If Turner sells 1,000 units of LF, what amount of gross profit should it recognize

  How should bell report the loss contingency

Expropriation is considered reasonably possible. How should Bell report the loss contingency?

  Describe the current convergence efforts of the fasb or iasb

Describe the current convergence efforts of the FASB and IASB in the area of accounting for taxes.

  Kendra co uses a standard job cost system with a normal

kendra co. uses a standard job cost system with a normal capacity of 25400 direct labour hours. kendra co. produces

  What would be the difference in operating income after tax

What would be the difference in operating income after tax for Diamond Ltd if transfer price

  Compute the costs assigned to ending inventory

Determine the costs assigned to the ending inventory when costs are assigned based on a periodic inventory system and use of (a) FIFO, (b) LIFO

  Prepare a direct materials budget for geico compound by

swanson inc. manufactures an advanced swim fin for scuba divers. management is now preparing detailed budgets for the

  Issuing audit opinion for company financial reports

Auditors have come into a department as part of a company-wide audit prior to issuing an audit opinion for the company's financial reports. In a one- to two- page paper (not including the title and reference pages), explain what the staff should e..

  Dreary days inc sells raincoats at a selling price of 2500

dreary days inc. sells raincoats at a selling price of 25.00 for each raincoat. the variable cost per raincoat is

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd