Q-15/1/14issued31701000bondsat102each was issued with 1detachable stock warrant.After issuance the bonds were selling at98but fair vaule of the warrants cannot be determineda)Prepare the entry to record the issance of the bonds and the warrants

Cash$3,233,400Discount on Bonds Payable$63,400TRUE Bonds Payable$3,170,000 Paid-in Capital-Stock Warrant$126,800

b)Assume the same facts as (a), except the Fair Value is 22Prepare the entry.

Cash$3,233,400Discount on Bonds Payable$7,593TRUE Bonds Payable$3,170,000 Paid-in Capital- Stock Warrant$70,993

Market Value of Bonds without warrants3106600Market Value of Warrants69740Total Market Value3176340

Value Assigned to Bonds3162407.185628743106600*32334003176340Value Assigned to Warrants7099369740*323340031763403233400

Q-2Issued2940000Convertible10year Bondson7/1/14Bond Provided for14%Interest PayableSemiannuallyon1-Janand1-JulThe discount in Connection with the issue was 39600Amortized monthly with Straight-lineThe Bonds are Convertible after 1year into 8share of 100par valueCommon Stockfor each 1200of bonds8/1/15294000of bonds were turned in for converstion into Common StockInterest has been accrued monthlyAt the time of conversion, the accrued interest on bonds being converted is paid in CASHPrepare the Journal enteries to record the conversion, amortization, and interest in connection with the bonds.a)8/1/15(Book Value method is used)b)8/31/15c)12/31/15(including closing entries for end-of-year)a)Discount on Bonds Payable3531Common Stock196000Paid-in Capital in Excess of Par- Common Stock94469Cash3430

a)Bonds Payable294000 Discount on Bonds Payable3531 Common Stock196000 Paid-in Capital in Excess- Co. Stk.94469

Interest Payable3430 Cash3430b)Interest Expense297Interest Payable30870Schedule 1full amount to be Amortized39600Monthly amount330months used13.20134290Balance on day before35310Debenture converted 10%(3531)Balance on Day of31779Remaining Monthly 297Schedule 2Amortization of bond discount charged to bond interest in year:Month in A/8First part of year 733023108end of year52971485Total3795

Interest on Bonds:Beg411600Monthly34300Denbenture percent370440Denbenture monthly30870

Interest would beTotal InterestFirst part of year 2401003795end of year154350394450total394450398245

b)Interest Expense297 Discount on Bonds Payable297

Interest Expense30870 Interest Payable30870

c)Income Summary398245 Interest Expense398245

Q-3Determine the Basic and Diluted Earnings Per share1)Authorized to Issue7228800shares10par value Common StockAs of 12/31/141807200shares had been issued and were outstanding2)The per share market prices of the common stock on selected dates were as follows:7/1/14201/1/15214/1/15257/1/15118/1/1510.511/1/15912/31/15103)A total of 699600shares of an authorized1386000shares of convertible preferred stock had been issued on 7/1/142098800Par25Cum. Dividend of 3per shareConversion1preferred to1commonadjusted for splits and dividendsDividends are quarterly30-Sep31-Dec31-Mar30-Jun4)Subject to a 40%income tax rate5)the after-tax net income for the year ended 12/31/15was12500000the following took place during the year1)1-Jan5%common stock dividend was issued.903600declared on 12/1/14for all stockholders as of 12/29/142)1-Apr411600shares of the 3convertible was convertednew common was issued and old preferred was retired.3)1-Jula 2 for 1 split of common stock became effective on this date. was authorized on 1-Jun4)1-Aug285600shares of common stock were issued to acquire a factory building5)1-Nov30800shares of common stock were purchased on the open markert at9per shareto be treasury stock, still held in treasury as of12/31/156)Common stock Cash Dividends declared and paid as follows15-Apr0.3per share15-Oct0.2per share7)Preferred stock cash dividendscash dividends were decalred and paid as scheduled.a)EventDates (outstanding)Shares (outstanding)RestatementFraction of yearWeighted SharesBeg, Balanace(include5%Stock Dividend)1-Jan1-Apr189756021/4$948,780Conversion of Preferred stock1-Apr1-Jul232974021/4$1,164,870Stock Split(2 for 1)1-Jul1-Aug46594801/12$388,290Issued Shares for building1-Aug1-Nov49450801/4$1,236,270Purchase of Treasury Stock1-Nov1-Dec49142801/6$819,047 Total number of Common Shares to Compute Basic4557257b)Number of Share to Compute Basic Earnings Per Share4557257Convertible Preferred Stock - Still Outstanding604800Convertible Preferred stock - Converted216090Number of shares to compute diluted earnings per share5378147c)After-tax net income12500000Preferred Stock Dividends March 31524700 June 30216000 Sept 30216000 Dec 312160006480001172700Adjusted Net Income11327300

Q-4Issued 333000010year8%Convertible at104interest paid semiannually30-Junand31-Deceach 1000debenture can be convered into 9shares of 104par value common stock after31-Dec-151-Jan-16333000of debentures are converted into common stockwhich is then selling at114and additional 333000are converted on31-Mar-16Market of the common stock is then117Accrued interest at will be paid on the next interest date

12/31/15Interest Expense127206Premium on Bonds Payable5994 Cash133200

1/1/16Bonds Payable333000Premium on Bonds Payable8525 Common Stock311688 Paid-In Capital in Excess - Common Stock29837

3/31/16Interest Expense6423Premium on Bonds Payable237 Interest Payable6660

3/31/16Bonds Payable333000Premium on Bonds Payable8288 Common Stock311688 Paid-In Capital in Excess- Common Stock29600

6/30/16Interest Expense101765Premium on Bonds Payable4795Interest Payable6660 Cash113220