Problem 16-5 Amy Dyken, controller at Teal Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Teal's financial statements. Below is selected financial information for the fiscal year ended June 30, 2017 TEAL PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET INFORMATION JUNE 30, 2017 Long-term debt Notes payable, 11% 8% convertible bonds payable 1196 bonds payable $980,000 5,030,000 6,100,000 $12,110,000 Total long-term debt Shareholders' equity Preferred stock, 6% cumulative, $50 par value, 98,000 shares authorized, 24,500 shares issued and outstanding Common stock, $1 par, 10,200,000 shares authorized, 1,020,000 shares issued and outstanding Additional paid-in capital Retained earnings $1,225,000 1,020,000 3,940,000 6,120,000 12,305,000 Total shareholders equity The following transactions have also occurred at Teal