Question

Record the journal entry in good format for this debt restructuring on the books of Cat’s Eye. Daniel Company had 30,000 shares of common stock outstanding on January 1 and issued an additional 9,000 on August 1 of 2016. The company also has $100,000 of 8% convertible bonds outstanding during the year. Each $1,000 bond is convertible into 5 shares of common stock. Daniel had after-tax net income for the year of $160,000, and the tax rate was 30%. A. Compute basic earnings per share to be reported on Daniel Company’s 2016 income statement. B. Compute diluted earnings per share to be reported on Daniel Company’s 2016 income statement. C. State the dollar amount then circle either ‘Diluted’ or ‘Ami-Diluted’ in reference to Van ‘B’



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