PROBLEM 7-11

PROBLEM 7 On January 1, 2019, Carol Company had 200,000 ordinary shares and 100,000 4%% P100 par value cumulative preference shares outstanding. No dividends were declared on either the preference or ordinary shares in 2018 or 2019. On March 1,2020, prior to the issuance of the financial statements for the year ended December 31, 2019, the entity declared a 100% share dividend on ordinary shares. Net Income for 2019 was P7,500,000. What amount should be reported as basic earnings per share? PROBLEM 8 Cynthia Company had a net income of P15,000,000 for the current year. The following appropriations have not been considered in this amount: Arrears of cumulative preference dividend for 2 years 4,000,000 Ordinary dividends 5,000,000 Preference share premium payable on redemption 1,000,000 Exceptional profit, net of tax 4,000,000 The entity had 3,000,000 ordinary shares of Pl par value outstanding at the beginning of the year. The following share transactions occurred during the current year: January 1 Issued at P5 per share, Pl paid to date 250,000 and entitled to participate in dividends to the extent paid up April 1 Full market price P3 per share issue 600,000 July 1 Purchase of own shares 400,000 What amount should be reported as basic earnings per share? PROBLEM 9 At the beginning of current year, Clara Company had 200,000 ordinary shares outstanding. On same date, the entity had issued 4,000 convertible 10% bonds with P1,000 face amount. The bonds were converted on October 1 and 40 ordinary shares were issued in exchange for each bond. Net income was P5,000,000. The income tax rate is 20%. What amount should be reported as diluted earnings per share? PROBLEM 10 Sandra Company reported the following liabilities in the statement of financial position: Accrued expenses 1.000.000 Accounts payable 500,000 Bonds payable 3,000.000 Unearned revenue 300,000 Obligations under finance lease |4.000.000 Advances from customers 1,200.000 Cash dividend payable 800,000 In preparing financial statements in a hyperinflationary economy, what total amount should be classified as nonmonetary liabilities? PROBLEM 11 Zusie Company provided the following information for the current year Net - monetary assets - January 1 880,000 Sales 3,900,000 Purchases 2,340,000 Expenses 975,000 Income tax 585,000 Cash dividend paid on December 31 200,000 The sales, purchases, expenses and income tax accrued evenly during the year. Index numbers are 200 on January 1 and 300 on December 31. What amount should be reported as gain or loss on purchasing power