Reference no: EM132732327
Questions -
Q1. Lilac Company has 200,000 shares of ordinary shares outstanding on January 1, 2019. On March 31, 2019, 100,000 shares of 10% convertible preference share par value of P10 were issued, the preference shares are convertible into 50,000 shares of ordinary shares. On December 31, 2019, Lilac Company reported a net income of P1,140,000 after tax and paid dividends of P300,000 to ordinary and P100,000 to preference shareholders. What is the diluted earnings per share?
Q2. Brown company had 200,000 shares of P20 par ordinary and 20,000 shares of P100 par, 6% cumulative, convertible preference share outstanding for the entire year ended December 31, 2019. Each preference shares are convertible into 5 shares of ordinary. The company reported net income during the year in the amount of P840,000. What is the diluted earnings per share for the year ended December 31, 2019? What is the basic earnings per share for December 31, 2019?
Q3. Red Company had 120,000 shares of ordinary share issued and outstanding at January 1, 2019. On January 2,2019 the company issued 80,000 shares of preferred stock. During the year the company declared and paid P420,000 cash dividend on the ordinary and P240,000 on the preference. Net income for the year was P1,500,000. What should be the basic earnings per share in 2019?
Q4. Blue Corporation's December 31, 2019 balance sheet reports the following shareholders equity; 10% Cumulative preference share capital, P100 par value per share, 15,000 shares issued and outstanding P1,500,000, Ordinary share capital, P100 par value, 50,000 shares issued P5,000,000, Share premium reserve P600,000, Treasury stock, (ordinary) 5,000 shares at cost (P650,000), Retained earnings P2,100,000. The last payment of dividend on preference share was on December 31, 2017. If Blue were to be liquidated, the preference shareholders would receive par value plus a premium of P10 per share. What is the book value per share on ordinary share? If the preference share is participating, what is the book value per share on ordinary share?
Q5. White Corporation's December 31, 2018 balance sheet reports the following shareholders equity: 8% Cumulative Preference share capital, P100 par value per share, 10,000 share issued and outstanding P1,000,000, Ordinary share capital, P100 par value, 50,000 shares issued & outstanding P5,000,000, Share premium reserve P600,000, Accumulated profits P1,500,000. Dividends are in arrears for 3 years on the preference share capital. If White is to be liquidated, the preference shareholders would receive par value plus a premium of P10 per share. The book value per share on ordinary share is?