On January 1, 2019, Sasha Inc issued 10-year, P3,000,000 face value, 6% bonds, at par. Each P1,000 bond is convertible into 15 ordinary shares of Sasha’s. Sasha’s net income for 2019 was P240,000, and its tax rate was 40%. Interest expense on the liability component in 2019 was P210,000. The company had 100,000 ordinary shares outstanding throughout 2019. None of the bonds were converted in 2019. 1. Compute the diluted earnings per share for 2019. 2. Compute the diluted earnings per share for 2019 assuming the same facts as above, except that P1,000,000 of 6% convertible preference shares were issued instead of the bonds. Each P100 preference share is convertible into 5 ordinary shares of Sasha’s.

Dream Corporation reported net income of $44,000 for 2019. The company has 10,000 shares of common stock issued and outstanding for all of 2019 and no preferred stock. During 2018, Dream issued $400,000 of 8% convertible bonds at par value. Each $1,000 bond can be converted into 24 shares of common stock. No bonds have been converted as of December 31, 2019. Dream has a 30% tax rate. Required: 1. Calculate the earnings per share amounts that Dream should disclose on its 2019 income statement. If required, round your answer to two decimal places.

On April 1, 2020, Oriole Company sold 20700 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Headland took advantage of favorable prices of its stock to extinguish 4800 of the bonds by issuing 158,400 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company’s stock was selling for $30 per share on March 1, 2021.   Prepare the journal entries needed on the books of Headland Company to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)   (a) April 1, 2020: issuance of the bonds. (b) October 1, 2020: payment of…

On January 2, 2021, Bramble Corp. issued at par $ 301000 of 6% convertible bonds. Each $1,000 bond is convertible into 60 shares. No bonds were converted during 2021. Bramble had 104000 shares of common stock outstanding during 2021. Bramble's 2021 net income was $ 153000 and the income tax rate was 35%. Bramble's diluted earnings per share for 2021 would be (rounded to the nearest penny) $ 1.40. $ 1.47. $ 1.35. $ 1.24.

On July 1, 2019, Salem Corporation issued $3.3 million of 9% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $33, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $3.3 million. The value of the warrants at the time of issuance was $132,000. Required:   Prepare in general journal format the entry to record the issuance of the bonds.

Please fast answer.

On July 1, 2019, Salem Corporation issued $3.2 million of 10% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $32, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $3.2 million. The value of the warrants at the time of issuance was $128,000. Required:   Prepare in general journal format the entry to record the issuance of the bonds.

On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 102, which are due on April 30, 2024. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne’s common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2014, the fair value of Payne’s common stock was $35 per share and of the warrants was $2.   On May 1, 2014, Payne should credit Paid-in Capital from Stock Warrants for $36,560. $36,720. $37,080. $65,000.

Larkspur Inc. issued $3,780,000 of 10%, 10-year convertible bonds on June 1, 2020, at 99 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,417,500 of these bonds were converted into 36,000 shares of $21 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued.(b) Prepare the entry to record the conversion on April 1, 2021. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.

Flint Company invests $10,000,000 in 6% fixed rate corporate bonds on January 1, 2020. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now $10,710,000. Interest is paid on January 1.Prepare journal entries for Flint Company to (a) record the transactions related to these bonds in 2020, assuming Flint does not elect the fair option; and (b) record the transactions related to these bonds in 2020, assuming that Flint Company elects the fair value option to account for these bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a)…