Wendapanze, a public limited company, reported proffits off $460 000 ffor the year ended 31 March...
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Wendapanze, a public limited company, reported proffits off $460 000 ffor the year ended 31 March 2016. On 1 April 2015, its capital structure consisted off 2 500 000 equity shares off $1 each and 600 000 8% prefference shares off $1 each. The prefference dividend was paid during the year. An ordinary dividend off $60 000 was paid during the year. Neither dividend has been taken account off in the above proffit ffigure. The reported basic earnings per share ffor the year ended 31 March 2015 was 8 cents. During the year ended 2016, the ffollowing changes took place to the issued share capital off Wendapanze Ltd: 1. 500 000 equity shares were issued in conjunction with the acquisition off another business. These were issued at ffull market price at the date off issue, 1 July 2015. 2. To help ffund expansion off the business, 1 800 000 shares were issued ffor cash to existing shareholders on 1 September 2015. The issue price was $1.40 per share, which represented a discount off 64 cents on the traded price immediately beffore the issue, which was $2.04. 3. On 31 March 2016 a bonus issue was completed off one share ffor every two held at that date. Required: a) Calculate the basic earnings per share off Wendapanze Ltd to be reported in the ffinancial statements ffor the year ended 31 March 2016. Show the recalculated comparative ffigure ffor the preceding year. Wendapanze, a public limited company, reported proffits off $460 000 ffor the year ended 31 March 2016. On 1 April 2015, its capital structure consisted off 2 500 000 equity shares off $1 each and 600 000 8% prefference shares off $1 each. The prefference dividend was paid during the year. An ordinary dividend off $60 000 was paid during the year. Neither dividend has been taken account off in the above proffit ffigure. The reported basic earnings per share ffor the year ended 31 March 2015 was 8 cents. During the year ended 2016, the ffollowing changes took place to the issued share capital off Wendapanze Ltd: 1. 500 000 equity shares were issued in conjunction with the acquisition off another business. These were issued at ffull market price at the date off issue, 1 July 2015. 2. To help ffund expansion off the business, 1 800 000 shares were issued ffor cash to existing shareholders on 1 September 2015. The issue price was $1.40 per share, which represented a discount off 64 cents on the traded price immediately beffore the issue, which was $2.04. 3. On 31 March 2016 a bonus issue was completed off one share ffor every two held at that date. Required: a) Calculate the basic earnings per share off Wendapanze Ltd to be reported in the ffinancial statements ffor the year ended 31 March 2016. Show the recalculated comparative ffigure ffor the preceding year.
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Related Book For
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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