1.) Entity A had 100,000, P10 par, 10% cumulative preference shares outstanding allthroughout 20x1. Entity A reported profit after tax of P2,800,000 for the yearended December 31, 20x1. The movements in the number of ordinary shares are asfollows: 1/1/20x1 Ordinary shares outstanding 120,000 3/1/20x1 Shares issued for cash 42,000 9/30/20x1 Subscribed shares 20,000 11/1/20x1 Reacquisition of treasury shares (12,000) Outstanding shares at the end of period 170,000 What is the basic earnings per share? a. 18.92 b. 18.07 c. 17.09 d. 16.98 2. Entity A is computing for its basic earnings per share and has Basic loss per share Entity A is computing for its basic earnings per share and has gathered the following information: Loss for the year Preferred dividends Outstanding ordinary shares (1,000,000) 50,000 100,000 There have been no changes in the number of outstanding ordinary shares during the period. What is the basic earnings (loss) per share? a. -10.50 c. -9.50 b. 10.50 d. 9.50 Restatement of EPS information 3. Entity A had 200,000 ordinary shares outstanding all throughout 20x1. In 20x2, the following share issuances occurred: On April 1, 20,000 shares were issued for cash. On September 30, a 10% bonus issue (share dividend) was declared. On November 1, a 2-for-1 share split was is 378/724 Entity A had the following profits: P2,200,000 in 20x2 and P1,800,000 in 20x1. What are the earnings per share to be disclosed in Entity A's 20x2 comparative financial statements? 20x2 20x1 4.02 a. 4.22 b. 4.37 4.07 4.09 c. 4.65 d. 4.78 4.12 that enable them to acquire 1 ordinary share at a subscription 4. Entity A has 200,000 ordinary shares outstanding on January Rights issue 4. Entity A has 200,000 ordinary shares outstanding on 1, 20x1. Entity A offers rights issue to its existing shareholders that enable them to acquire 1 ordinary share at a subscription price of P120 for every 5 rights held. The rights are exercised on May 1, 20x1. The market price of one ordinary share immediately before exercise is P180. Entity A reported profit after tax of P2,900,000 in 20x1. What is the basic earnings per share in 20x1? . 12.58 b. 12.67 . 11.92 d. 17.67 Diluted EPS 5. Entity A had the following instruments outstanding all throughout 20xl: 12% convertible bonds payable issued at face amount, each P1,000 bond is convertible into 30 ordinary shares P2,000,000 Ordinary shares, P10 par, 100,000 shares issued and outstanding 1,000,000 Profit for the year is P800,000. Entity A's income tax rate is 30%. What is the diluted earnings per share in 20x1? a. 6.28 c. 6.05 b. 6.15 d. 5.98