Myca Angeles

BSA501

DIMACULANGAN COMPANY
Dimaculangan Company has 50,000 ordinary shares outstanding on December 31, 2X19. During t
P1,000,000. Compute the basic EPS in the following independent scenarios:
a.There are no preference shares issued.
b.Dimaculangan issued 10,000 shares of 10%, 100 par, cumulative, preference shares.
c.Dimaculangan issued 10,000 shares of 10%, 100 par, noncumulative, preference shares, and declare

a. Net income 1,000,000

Divided by Ordinary share 50,000
Basic earnings per share 20

b.   Preference share Capital (10,000x100) 1,000,000

Net income 1,000,000

Less: Preference share dividend(1,000,000x10%) 100,000

Net income to ordinary shares 900,000

Basic earnings per share (900,000/50,000) 18

c.   Ordinary share 300,000

Add: Share dividend 30,000
(300,000x10%)
Total ordinary share outstanding 330,000

Net income 1,000,000

Less: Preference dividend 300,000
Net income to ordinary share 700,000

Basic earnings per share (700,000/330,000) 2.12