Journal entry to record issuance of the bonds.

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On December 31, 2023, Berclair Incorporated had 360 million shares of common stock and 12 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 40 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. . Net income for the year ended December 31, 2024, was $600 million. Also outstanding at December 31 were 60 million incentive stock options granted to key executives on September 13, 2019. The options were exercisable as of September 13, 2023, for 60 million common shares at an exercise price of $60 per share. During 2024, the market price of the common shares averaged $80 per share. The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have…

Answer 1

Question

Chapter 11, Problem 11.4EX

a.

To determine

To prepare: Journal entry to record issuance of the bonds.

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

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On December 31, 2023, Berclair Incorporated had 360 million shares of common stock and 12 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 40 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. . Net income for the year ended December 31, 2024, was $600 million. Also outstanding at December 31 were 60 million incentive stock options granted to key executives on September 13, 2019. The options were exercisable as of September 13, 2023, for 60 million common shares at an exercise price of $60 per share. During 2024, the market price of the common shares averaged $80 per share. The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible securities have…

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Answer 2

Question

Chapter 11, Problem 11.4EX

a.

To determine

To prepare: Journal entry to record issuance of the bonds.

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

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Answer 3

Question

Chapter 11, Problem 11.4EX

a.

To determine

To prepare: Journal entry to record issuance of the bonds.

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

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Answer 4

Question

Chapter 11, Problem 11.4EX

a.

To determine

To prepare: Journal entry to record issuance of the bonds.

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11.4EX

a.

To determine

To prepare: Journal entry to record issuance of the bonds.

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Answer 6

Chapter 11, Problem 11.4EX

a.

To determine

To prepare: Journal entry to record issuance of the bonds.

Answer 7

Chapter 11, Problem 11.4EX

a.

To determine

To prepare: Journal entry to record issuance of the bonds.

Answer 8

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

Answer 9

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

Answer 10

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Answer 11

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Answer 12

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Journal entry to record issuance of the bonds.

Solution Summary: The author explains that bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To prepare: Journal entry to record issuance of the bonds.

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Chapter 11 Solutions

Journal entry to record issuance of the bonds.

Solution Summary: The author explains that bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To prepare: Journal entry to record issuance of the bonds.

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations. To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Chapter 11 Solutions

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.