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HW 6
Petrenko Corporation has outstanding 2,010 $1,000 bonds, each convertible into 50 shares of $13 par value common stock. The bonds are converted on December 31, 2012, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach.
(List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Description/Account
Debit
Credit
#2
Pechstein Corporation issued 2,160 shares of $11 par value common stock upon conversion of 1,130 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share. The common stock is trading at $26 per share at the time of conversion. Record the conversion of the preferred stock.
(List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Description/Account
Debit
Credit
#3
Rockland Corporation earned net income of $358,500 in 2012 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $956,000 of 10% bonds, which are convertible into 19,120 shares of common. Rockland’s tax rate is 40 percent. Compute Rockland’s 2012 diluted earnings per share.
(Round answer to 2 decimal places, e.g. 2.13.)
$
#4
DiCenta Corporation reported net income of $273,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 6,970 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta’ tax rate is 40%. Compute DiCenta’ 2012 diluted earnings per share.
(Round answer to 2 decimal places, e.g. 5.23.)
$
#5
Bedard Corporation reported net income of $387,000 in 2012 and had 200,000 shares of common stock outstanding throughout the year. Also outstanding all year were 46,000 options to purchase common stock at $15 per share. The average market price of the stock during the year was $23. Compute diluted earnings per share.
(Round to 2 decimal places, e.g. 6.10.)
$
