ACC 304 All Assignments ACC 304 All Assignments | Page 17

2)
Didde Co. had 300,000 shares of common stock issued and
outstanding at December 31, 2014. No common stock was issued
during 2015. On January 1, 2015, Didde issued 200,000 shares of
nonconvertible preferred stock. During 2015, Didde declared and paid
$75,000 cash dividends on the common stock and $60,000 on the
preferred stock. Net income for the year ended December 31, 2015 was
$465,000. What should be Didde's 2015 earnings per common share?
3) When convertible debt is retired by the issuer, any material
difference between the cash acquisition price and the carrying amount
of the debt should be
4) On July 1, 2014, an interest payment date, $90,000 of Parks Co.
bonds were converted into 1,800 shares of Parks Co. common stock
each having a par value of $45 and a market value of $54. There is
$3,600 unamortized discount on the bonds. Using the book value
method, Parks would record
5)
Convertible bonds
6) Paige Co. took advantage of market conditions to refund debt.
This was the fourth refunding operation carried out by Paige within the
last three years. The excess of the carrying amount of the old debt over
the amount paid to extinguish it should be reported as a