33. Jet Corporation had 8 million shares of common stock outstanding during the current calendar year. On July 1, Jet issued ten thousand $1,000 face value, convertible bonds.Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannuallly for 20 years. They have a stated rate of 12%.Jet had income before tax of $24 million and a net income of $18 million. Jet would report the following EPS data (rounded):Basic EPS$2.25b. $2.25C. $2.25$2.25a.d.A. Option AB. Option BC. Option CD. Option DDiluted EPS$2.24n/a antidilutive$2.16$2.12

Earnings per share represent the amount of earnings attributable to a single unit of the common…

Answered: 33. Jet Corporation had 8 million…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Texon Corporation had 8 million shares of common stock outstanding during the current calendar year. On January 1, Texon issued ten thousand $1,000 face value, convertible bonds. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannually for 20 years. They have a stated rate of 12%. Texon had income before tax of $24 million and a net income of $18 million. The income tax rate is 25%. Texon would report the following EPS data (rounded): BASIC EPS Diluted EPS A. $ 2.25 $ 2.24 B. $ 2.25. $ N/A Antidulutive C. $2.25 $ 2.22 D. $2.25. $ 2.25 O Option A O Option B O Option C O Option D SHOW WORK THANKS
On July 1 of Year 1, Salem Corporation authorized $1,900,000 of 7% bonds due in 10 years. The bonds pay cash interest semiannually each June 30 and December 31. Each $1,000 bond includes a detachable stock purchase warrant. Each warrant gives the bondholder the right to purchase, for $30, one share of $1 par value common stock at any time during the next 10 years. The bonds were sold at 101 on July 1 of Year 1. The value of the stock purchase warrants at the time of issuance was $95,000. The bonds would sell without warrants at $ $1,843,000. Please avoid answers in image format thank you
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5) Ehrlich Corporation has 400,000 shares of common stock outstanding throughout 2021. In addition, the corporation has 5,000, 20-year, 9% bonds issued at par in 2019. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/22. During the year 2021, the corporation earned $900,000 of net income. The tax rate was 25%. Ehrlich Corporation has 400,000 shares of common stock outstanding throughout 2021. In addition, the corporation has warrants exercisable at $20 each to obtain 80,000 shares of common stock when the average market price of the common stock was $25.. During the year 2021, the corporation earned $900,000 of net income. Instructions Compute the basic earnings per share for 2021, and the diluted earnings per share under each of the above situations (note-BEPS is the same for both a and b).
Kahlua Company had 100,000 shares of common stock outstanding on January 1st. On September 30th, Kahlua sold 48,000 shares of common stock for cash. Kahlua had 10,000 shares of convertible preferred stock outstanding throughout the year. Each preferred stock is $100 par, 6%, and is convertible into 3 shares of common stock. Kahlua also had 500, 8%, convertible bonds outstanding throughout the year. Each $1,000 bond is convertible into 30 shares of common stock. The bonds were issued at par. Net income for the year was $300,000 and the tax rate is 40%. The preferred dividends were paid during the year.Basic earnings per share reported by Kahlua Company for the year is closest to:-$2.14-$2.68-$2.06-$2.36 Diluted earnings per share reported by Kahlua Company for the year is closest to:-$2.14-$2.68-$2.06-$2.36
sarasota corporation has 9% convertible bonds outstanding. it recorded interest expense (net of income taxes) Oven $6,300 on these bonds during the year. The bonds are convertible into 2500 shares of common stock. compute the impact of these convertible bonds on Sarasota diluted earnings per share.
Sunland Corporation issued 6,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Sunland at $9 per share, the price at which Sunland shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30, 2023, 1,200 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date January 1, 2023 June 30, 2023 Account Titles and…
Hoffman Corporation issued $60 million of 8%, 20-year bonds at 105. Each of the 60,000 bonds was issued with 13 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds.
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A corporation began be issuing 1 million share of $1 common stock. The proceeds from this common stock issuance was $10,000,000. The corporation issued a first-mortgage bond for $25,000,000. It was issued at par value, the coupon interest rate is 5% and the life is 10 years. The corporation established a line of credit with a commercial bank and immediately borrowed $2,000,000 from this line of credit. This amount is to be repaid in 6 months. Construct a partial classified balance sheet in good form based on the transactions above.
Carla Vista Corporation issued convertible bonds at a premium of $9800. The $193000 bond issue was convertible into 3200 shares of common stock (par value $20). Two years later, all of the bonds were converted to shares of stock. At that time, the unamortized premium was $4200, the market value of the bonds was $213000, and the market value of the stock was $60 per share. What amount of paid-in capital in excess of par is recorded on the conversion of the bonds? O $133200 O $153200 $129000 $138800

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