Only typing answerPlease answer explaining in detail step by step without table and graph thankyou 16.5 Diluted Earnings per ShareIn 2017, Crandall Organic Produce issued $1,000 par value, 8% convertible bonds with a 10-year term with the following stipulations:1. Convertible for 10 shares of $10 par value common stock if exercised between January 1, 2017, and December 31, 2018.2. Convertible for 15 shares of $10 par value common stock if exercised between January 1, 2019, and December 31, 2021.3. Convertible for 25 shares of $10 par value common stock if exercised between January 1, 2022, and December 31, 2024.4. Convertible for 40 shares of $10 par value common stock if exercised between January 1, 2025, and December 31, 2026.When calculating the diluted EPS in 2020, what conversion factor should they use?10 shares per bond40 shares per bond15 shares per bond.25 shares per bondSave for LaterSubmit Answer

The number of diluted earnings per share is the number of shares which will be in place when all the…

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Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 20E

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On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.
1. ETK's 12/31/21 Balance Sheet reported the following information: 7.8% registered bonds callable at 107 beginning in 2031, due 2035 (net of unamortized discount of $2 million) $53 million Equity - Stock Warrants $5 million The company disclosed the following information regarding their 7.8% bonds: "The bonds were issued in 2012 at 105 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitles the holder to purchase one share of the Company's $1 par common stock for $35, beginning 2022." How much did total liabilities increase when the bonds were issued in 2012?
On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and will mature on March 1, 2024. The bonds were sold to yield 10%, total proceeds received by Khaleesi is equivalent to the market value plus accrued interest. Interest is paid every March 1 and September 1. 14) What is the balance of unamortized premium/discount in the statement of financial position as of December 31, 2020?
The December 31, 2020, balance sheet of Windsor Corp. is as follows. 9% callable, convertible bonds payable (semiannual interest dates April 30 and October 31; convertible into 6 shares of $25 par value common stock per $1,000 of bond principal; maturity date April 30, 2026) $616,000 Discount on bonds payable 8,448 $607,552 On March 5, 2021, Windsor Corp. called all of the bonds as of April 30 for the principal plus interest through April 30. By April 30, all bondholders had exercised their conversion to common stock as of the interest payment date. Consequently, on April 30, Windsor Corp. paid the semiannual interest and issued shares of common stock for the bonds. The discount is amortized on a straight-line basis. Windsor uses the book value method.Prepare the entries to record the interest expense and conversion on April 30, 2021. Reversing entries were made on January 1, 2021. (Credit account titles are automatically indented when amount is entered.…
Current Attempt in Progress\\nFlint Inc. issued $3,780,000 of 9%,10 -year convertible bonds on June 1,2020 , at 98 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.\\nOn April 1, 2021, $1,417,500 of these bonds were converted into 30,000 shares of $19 par value common stock. Accrued interest was paid in cash at the time of conversion.\\n(a) Prepare the entry to record the interest expense at 5 ctober 1, 2020. Assume that accrued interest payable was credited when the bonds were issued.\\n(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.
Cnc bso Ine Skysong Inc. issued $3,120,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for 12% merest payable semiannually on January 1 and July 1. The discount in connection with the issue was $49,200, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Skysong Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2021, $312,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (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 O for the amounts.) (a) (b) (c) : August 1, 2021.…
Current Attempt in Progress On January 2, 2021, Crane Company issued at par $1920000 of 5% convertible bonds. Each $1000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Crane had 206000 shares of common stock outstanding during 2021. Crane's 2021 net income was $904000 and the income tax rate was 25%. Crane's diluted earnings per share for 2021 would be (rounded to the nearest penny): O $4.47. O $4.77. O $4.39. O $4.33. Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air
RESA / Financial Accounting and Reporting: 6. On January 1, 2016. Trader Company issued its 8%. 4-year convertible debt instrument with a face amount of P6,000,000 for P5,900,000. convertible into 50,000 ordinary shares with a par value of P100. When the debt instruments were issued, the prevailing market rate of interest for similar debt withent conversion option is 10%. Liabilities-Long-term Interest is payable every December 31 of cach year. The debt instrument is PV of 10% for an ordinary annuity of PI after 4 periods PV of 10% after 4 interest periods 3.169865 .683013 Question 1: What is the amortized cost of the debt as vf December 31, 2018? P5,619,616 b. P5,701,578 c. P5,791.735 d. P5,890.909 a. Question 2: What is the amount of interest expense for the vear ended December 31, 2017? P561,962 P570,158 c. P579,173 d. P589.091 a. b.
The December 31, 2020, balance sheet of Kepler Corp. is as follows. 10% callable, convertible bonds payable (semiannual interest dates April 30 and October 31; convertible into 6 shares of $25 par value common stock per $1,000 of bond principal; maturity date April 30, 2026) $500,000 Discount on bonds payable 10,240 $489,760 On March 5, 2021, Kepler Corp. called all of the bonds as of April 30 for the principal plus interest through April 30. By April 30, all bondholders had exercised their conversion to common stock as of the interest payment date. Consequently, on April 30, Kepler Corp. paid the semiannual interest and issued shares of common stock for the bonds. The discount is amortized on a straight-line basis. Kepler uses the book value method. Instructions Prepare the entry(ies) to record the interest expense and conversion on April 30, 2021. Reversing entries were made on January 1, 2021. (Round to the nearest dollar.)
Current Attempt in Progress Flint Inc. issued $3,780,000 of 9%, 10-year convertible bonds on June 1, 2020, at 98 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 30,000 shares of $19 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) (b) Prepare the entry to record the interest expense at October 1, 2020. Assume that accrued interest payable was credited when the bonds were issued. 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.
On 1/1/2015, Illini issued 9%, $300,000 face value bonds for $328,558, when the effective market rate (yield) for bonds of similar risk and maturity was 4%. The bonds mature on 12/31/2016. Interest is paid semiannually on June 30 and December 31. Date cash interest effective interest change of balance outstanding balance 1/1/2015 6/30/2015 12/31/2015 1. Assume that Illini elected the fair value option. Due to changes in general market rates, the yield (effective rate) was 5% on 6/30/2015. Prepare the journal entries that Illini recorded on 6/30/2015. 2. Although the market rate did not change from 6/30/2015 to 12/31/2015, due to changes in Illini's credit risk, the effective rate for its bonds was 8% on 12/31/2015. Prepare the journal entries that Illini recorded on 12/31/2015. 3. What was the total effect of the bonds on Illini pre-tax income for 2015? Show your work.
Vaughn Inc. issued $3,790,000 of 10%, 10-year convertible bonds on June 1, 2025, at 99 plus accrued interest. The bonds were dated April 1, 2025, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2026, $1,421,250 of these bonds were converted into 34,000 shares of $18 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) (b) Prepare the entry to record the interest expense at October 1, 2025. Assume that accrued interest payable was credited when the bonds were issued. Prepare the entry to record the conversion on April 1, 2026. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made. (List all debit entries before credit entries. 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 O for…

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