PROBLEM 1 One Class of Shares | Data relating to the PROBLEM 4 Basic and Diluted EPS with Convertible

shareholders' equity of Carlo Co. during December 31 are as Bonds Payable | On January 1, Albero Co. has 120,000
follows: outstanding ordinary shares. During the year, Albero Co.
reported net income of P3,000,000. Income tax rate is 30%.
Ord share capital, P50 par, 200,000 shares issued P10,000,000 In addition, Albero Co. has 1,800, 10% convertible bonds
Subscribed ordinary share capital 1,000,000
Share premium 2,500,000 P1,000 face amount. Each bond is convertible into 5 ordinary
Subscription receivable (1,200,000) shares.
Retained earnings 4,900,000
Revaluation surplus 620,000
Unrealized loss on FVTOCI securities (400,000)
Based from the above data, answer the following:
Treasury shares, at cost, 20,000 shares (1,200,000) 1. How much is the basic EPS for the year?
Total shareholders' equity P16,220,000 2. How much is the basic EPS for the year assuming bonds
were issued in the previous year and were converted on
How much is the book value per ordinary share? August 1?

PROBLEM 2 Book Value per Share | Data relating to the

shareholders' equity of Martin Co. during December 31 are ***End of Activity***
as follows:

8% Preference share, P100 par, 40,000 shares P4,000,000

Ordinary share, P40 par, 26,000 shares issued 1,040,000
Treasury ordinary shares (1,000 shares at cost) (70,000)
Retained earnings 7,000,000
Total shareholders' equity P11,970,000

Dividends are in arrears for four years.

Based on the above data, answer the following independent

cases:
1. Assuming the preference shares are cumulative.
a. How much is the book value per preference share?
b. How much is the book value per ordinary share?

2. Assuming the preference shares are cumulative with

liquidation value of P105 per share.
a. How much is the book value per preference share?
b. How much is the book value per ordinary share?

3. Assuming the preference shares are noncumulative.

a. How much is the book value per preference share?
b. How much is the book value per ordinary share?

4. Assuming the preference shares are participating.

a. How much is the book value per preference share?
b. How much is the book value per ordinary share?

PROBLEM 3 Weighted Average with Share Split | On

January 1 of the current year, Solomon Company had
240,000 issued ordinary shares and 220,000 of ordinary
shares outstanding. The entity had the following transactions
during the year:

March 1: Issued 12,000 ordinary shares

March 30: Completed a 4 for 1 share split for the
ordinary shares
April 1: Reissued 9,000 of the treasury shares
October 1 : Reissued 6,000 treasury shares

The weighted average ordinary shares in computing for the

earnings per share would be