Katrina Company reported the following information at the end of reporting period: 1,500,000 Bonds payable – 10% Preference share capital, 12% cumulative, P100 par, 30,000 shares Ordinary share capital, 100,000 shares, P50 par 3,000,000 5,000,000 The bonds are convertible into ordinary shares in the ratio of 20 ordinary shares for every P1,000 bond. The preference share is convertible into ordinary share in the ratio of two ordinary shares for one preference share. The net income for the year was P3,695,000 and the income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share

Katrina Company reported the following information at the end of reporting period: 1,500,000 Bonds payable – 10% Preference share capital, 12% cumulative, P100 par, 30,000 shares Ordinary share capital, 100,000 shares, P50 par 3,000,000 5,000,000 The bonds are convertible into ordinary shares in the ratio of 20 ordinary shares for every P1,000 bond. The preference share is convertible into ordinary share in the ratio of two ordinary shares for one preference share. The net income for the year was P3,695,000 and the income tax rate is 30%. Required: 1. Basic earnings per share 2. Diluted earnings per share

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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