During 2020, Empresas ABC issued 4,000 preferred shares with a par value of $ 10 to $ 11 each. Each preferred share can be exchanged at the option of the holder (investor) for three common shares of ABC with a par value of $ 1. In August 2021, all preferred shares were exchanged. At that time the market value of the common stock was $ 5 per share. What amount must ABC credit to the Capital account contributed in excess of the value for common shares? a. $32,000 b. $48,000 c. 0 d. $44,000

In 2020, Eklund, Inc., issued for $103 per share, 90,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Eklund's $25 par value common stock at the option of the preferred stockholder. In August 2021, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock? a. $2,250,000 b. $2,520,000 c. $1,170,000 d. $1,530,000

On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Ivanhoe Corp. issued $11,200,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation’s common stock. The debentures were issued for $12,096,000. The present value of the bond payments at the time of issuance was $9,520,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2020, the corporation’s $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2021, when the corporation’s $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.(a) Prepare the entry…

On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $10,800,000. The present value of the bond payments at the time of issuance was $8,500,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2020, the corporation's $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2021, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. Instructions a.…

1) On July 1, 2021, an interest payment date, $120,000 of ABC Co. bonds were converted into 2,000 shares of ABC Co. common stock each having a par value of $40 and a market value of $45. There is $5,000 unamortized discount on the bonds. Using the book value method, the increase in additional paid in capital would be?   2)  In 2020, ABC, Inc., issued for $103 per share, 100,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of ABC's $20 par value common stock at the option of the preferred stockholder. In September 2021, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $28 per share. What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock?      3) ABC Corp. had 600,000 shares of common stock outstanding on January 1, issued 800,000…

On May 2020 GSW was organized with 3,000,000 authorized shares of P10 par value ordinary shares, and 300,000 of its ordinary shares were issued for P3,300,000. Net income through December 31, 2020 was P125,000. On July 23, 2021, when the shares were selling at P13 per share, GSW issued 500,000 of its ordinary shares in exchange of a real estate properties which were fairly valued at P6,250,000. A 5% share dividend was declared on October 2, 2021, to shareholders of record on October 23, 2021. The market value of the ordinary shares was P11 per share on the declaration date. GSW net income for the year ended December 31, 2021 was P350,000. During 2022, GSW had the following transactions: In February, GSW reacquired 15,000 of its treasury shares for P12 per share. In June, GSW sold 15,000 of its treasury shares for P12 per share. In September, each shareholder was issued (for each share held) one right to purchase two additional ordinary shares for P13 per share. The rights shall expire…

During 2019, Honeymooners Companies issued 4,000 preferred shares with par value of $ 1 to $ 11 each. Each preferred share can be exchanged (convert), at the option of the holder (investor), for three Honeymooners common shares with par value of $ 2. In April 2020, all preferred shares were exchanged. At the time of the exchange, how much must Honeymooners credit to the contributed capital account in excess of par value of commons? Select one: to. $ 44,000 b. $ 0 c. $ 40,000 d. $ 20,000

On January 1, 2020, Ayayai Company issued 10-year, $2,140,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Ayayai common stock. Ayayai’s net income in 2020 was $482,300, and its tax rate was 20%. The company had 91,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020.(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share   $enter diluted earnings per share rounded to 2 decimal places   (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $910,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Ayayai common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share   $enter diluted earnings per share rounded to 2 decimal places

In 2024, Blossom, Inc. issued 91000 shares of $100 par value convertible preferred stock for $102 per share. Each share of preferred stock can be converted into three shares of Blossom's $25 par value common stock at the option of the preferred stockholder. In August 2025, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What amount will be credited to additional paid-in capital from common stock as a result of the conversion? $2457000 O $2275000 O $1456000 O $1092000

On January 1, 2020, Gottlieb Corporation issued $4,000,000 of 10-year, 8% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into eight shares of Gottlieb Corporation $100 par value common stock after December 31, 2021. On January 1, 2022, $400,000 of debentures are converted into common stock, which is then selling at $110. An additional $400,000 of debentures are converted on March 31, 2022. The market price of the common stock is then $115. Accrued interest at March 31 will be paid on the next interest date. Bond premium is amortized on a straight-line basis. Instructions Make the necessary journal entries for:   a.   December 31, 2021. b.   January 1, 2022. c.   March 31, 2022. d.   June 30, 2022. Record the conversions using the book value method.