Metlock Corporation had net income for the current fiscal year of $ 952, 200, and common shares outstanding of 92,000. There were no changes to Metlock's common shares during the year.Metlock also had outstanding a $1,000,000,9 % bond sold in a previous year that was convertible to 82,000 common shares. In addition, Metlock sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 13% bond, convertible to 76,000shares. Metlock was subject to a tax rate of 27 %. Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Basic EPS Sub Total Diluted EPS $ $ Numerator Denominator EPS 101

Metlock Corporation had net income for the current fiscal year of $ 952, 200, and common shares outstanding of 92,000. There were no changes to Metlock's common shares during the year.Metlock also had outstanding a $1,000,000,9 % bond sold in a previous year that was convertible to 82,000 common shares. In addition, Metlock sold a new bond on October 1 of the current year. The new bond was a $1,000,000, 13% bond, convertible to 76,000shares. Metlock was subject to a tax rate of 27 %. Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, e.g. 3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Basic EPS Sub Total Diluted EPS $ $ Numerator Denominator EPS 101

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds.
A company issued $500,000 of bonds for $498,351. Interest is paid semiannually. The bond markets and the financial press are likely to report the bond issue price as
Applegate Corporation sells $170,000, 9%, 20-year bonds for 96 on January 1. Interest is paid on January 1 and July 1. Straight-line amortization is used. The amount of interest expense recorded on July 1, six months after issuance is:
During Year 1 and Year 2, Agatha Corporation completed the following transactions relating to its bond issue. The corporation’s fiscal year is the calendar year. Year 1 January 1 Issued $310,000 of 10-year, 6 percent bonds for $298,000. The annual cash payment for interest is due on December 31. December 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. December 31 Closed the interest expense account. Year 2 December 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. December31 Closed the interest expense account. Required a-1. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? a-2. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received? b. Prepare the liabilities section of the balance sheet at December 31, Year 1…
Jones Corp. had 120,000 shares outstanding all of year 8. During year 8, Jones paid dividends of $60,000 on its non-cumulative, convertible preferred stock. The convertible preferred shares may be exchanged for 20,000 of shares of common stock. The $4,000,000 face value, 6% convertible bonds (issued at par) are convertible into 120,000 shares of common stock. Net income for year 8 is $250,000 and the corporate tax rate is 40%. Security Name Convertible Proferred Shares 6% Convertible Bonds Issued at Par Value O $1.29 O $1.39 O $1.58 O $1.60 4 Numerator Denominator If-Converted f-Converted Method Method $60,000 $144,000 What is diluted earnings per share for year 87 20,000 120,000 Per Share Effect $3.00 $1.20
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Pronghorn Corp. issued $21,600,000 par value 11% convertible bonds at 97. If the bonds had not been convertible, the company’s investment banker estimates they would have been sold at 95. 2. Stellar Company issued $21,600,000 par value 11% bonds at 96. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3. Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to the transaction. The 12%, $10,900,000 par value bonds were converted into 1,090,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $78,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.
Kk.342.
Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. The bonds have a 5.50% stated rate of interest interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1? Multiple Choice O Zero and $40,700 $40,700 and $40,700 Zero and Zero $40,700 and Zero
Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. Aug. 2 Purchased Verizon bonds for $10,000. Sep. 7 Purchased Apple bonds for $35,000. 12 Purchased Mastercard bonds for $20,000. Oct. 21 Sold some of its Verizon bonds that had cost $2,000 for $2,100 cash. 23 Sold some of its Apple bonds that had cost $15,000 for $15,400 cash. Nov. 1 Purchased Walmart bonds for $40,000. Dec. 10 Sold all of its Mastercard bonds for $18,000 cash. Required 1. Prepare journal entries to record these transactions. 2. Prepare a table to compare the year-end cost and fair values of its trading debt securities. Year-end fair values: Verizon, $8,500; Apple, $22,000; and Walmart, $39,000. 3. Prepare the adjusting entry to record the year-end fair value adjustment for the portfolio of trading debt securities.
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 7/2/Y1 Loch Ness, Inc. purchased 50 of the $1,000 face bonds issued by EBerry Corp. Loch Ness paid $1,000 for each bond. The EBerry Corp. bonds were trading at 108 on 12/31/Y1 and at 98 on 12/31/Y2. Loch Ness sold all 50 of the EBerry bonds on 7/1/Y3 for when the market price was 104. They prepare financial statements on December 31st each year. Prepare all the JE needed for Loch Ness's investment in EBerry. Show calculation
During Year 11, Pacilio Security Services experienced the following transactions: Paid the sales tax payable from Year 10. Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes). Issued 5,000 additional shares of the $5 par value common stock for $8 per share. Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share. Purchased $500 of supplies on account. Purchased 190 alarm systems at a cost of $310. Cash was paid for the purchase. After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable. Sold 210 alarm systems for $600 each plus sales tax of 5 percent. All sales were on account. Record the cost of goods sold related to the sale from Event 8 using the FIFO method. Billed $125,000 of monitoring services for the year. Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee. The remaining $67,000 were…

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