On December 31, 2013 and 2012, Gow Company had 100,000 ordinary shares and 10,000

cumulative preference shares of 5%, P100 par value. No dividends were declared on either
the preference or ordinary share in 2013 or 2012. Net income for the current year was
P900,000. What amount should be reported as basic earnings per share?
a. 8.50
b. 9.50
c. 9.00
d. 5.00

Madden Company had 500,000 ordinary shares issued and outstanding on December 31,
2012. During 2013, no additional ordinary shares were issued. On January 1, 2013, the entity
issued 400,000 noncumulative and nonconvertible preference shares: During 2013, the entity
declared and paid P200,000 cash dividend on the ordinary share and P110,000 annual
dividend on the preference share. Net income for 2013 was P750,000. What amount should
be reported as basic earnings per share?
a. 1.88
b. 1.60
c. 1.28
d. 1.50

Helen Company provided the following share transactions for the current year:
January 1 Shares outstanding 44,000
February 1 Issued for cash 56,000
May 1 Acquired treasury shares 25,000
August 1 25% stock dividend
September 1 Resold treasury shares 10,000
November 1 Issued 3 for 1 share split

What is the weighted average number of shares for EPS computation?

a. 305,000
b. 307,500
c. 103,750
d. 311,250
Wisconsin Company had 250,000 ordinary shares outstanding on January 1, 2013. During
2013 and 2014, the following transactions took place.
2013 March 1 Sold 24,000 shares
July 1 Issued a 20 percent stock dividend
October 1 Sold 16,000 shares
December 1 Purchased 15,000 shares to be held in treasury

2014 June 1 3 for 1 share split

September 1 Sold 60,000 shares

1. What is the weighted average number of shares for 2013 to be used in the earnings
per share computation for comparative financial statements at the end of 2014?
a. 980,250
b. 329,800
c. 984,000
d. 969,000
2. What is the weighted number of shares for 2014 to be used in the earnings per share
computation for comparative financial statements at the end of 2014?
a. 1,009,400
b. 1,049,400
c. 1,169,400
d. 989,400

Cox Company had 1,200,000 ordinary shares outstanding on January 1 and December 31,
2013. In connection with the acquisition of a subsidiary in June 2012, the entity is required to
issue 50,000 additional ordinary shares on July 1, 2014 to the former owners of the subsidiary.
The entity paid P200,000 annual preference dividend in 2013 and reported net income of
P3,400,000 for the year. The preference share capital is noncumulative and nonconvertible.
What amount should be reported as diluted earnings per share?
a. 2.83
b. 2.72
c. 2.67
d. 2.56

Dunn Company had 200,000 ordinary shares of P20 par value and 20,000 shares of P100
par, 6% cumulative, convertible preference share capital outstanding for the entire year ended
December 31, 2013. Each preference share is convertible into 5 ordinary shares. The net
income for 2013 was P840,000. What amount should be reported as diluted earnings per
share?
a. 2.40
b. 2.80
c. 3.60
 d. 4.20
Vios Company had 100,000 ordinary shares outstanding on January 1, 2013. In addition, on
January 1, 2013, the entity had issued 10,000 convertible cumulative 5% preference shares
with P100 par. These preference shares were converted on September 1, 2013. Each
preference share was converted into six ordinary shares. The preference dividends for the
entire year were paid in full before the conversion. The entity has no other potentially dilutive
securities. Net income for 2013 was P2,000,000. What amount should be reported as diluted
earnings per share?
a. 12.50
b. 12.19
c. 16.25
d. 19.50