ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 7

Please use those as well for your finals and please either use the
question number or some data from question to search as they usually
change the company keeping the data same
2)
Convertible bonds
3) Litke Corporation issued at a premium of $5,000 a $100,000
bond issue convertible into 2,000 shares of common stock (par value
$20). At the time of the conversion, the unamortized premium is
$2,000, the market value of the bonds is $110,000, and the stock is
quoted on the market at $60 per share. If the bonds are converted into
common, what is the amount of paid-in capital in excess of par to be
recorded on the conversion of the bonds?
4) 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?
5) Weiser Corp. on January 1, 2012, granted stock options for
40,000 shares of its $10 par value common stock to its key employees.
The market price of the common stock on that date was $23 per share
and the option price was $20. The Black-Scholes option pricing model
determines total compensation expense to be $420,000. The options
are exercisable beginning January 1, 2015, provided those key
employees are still in Weiser’s employ at the time the options are
exercised. The options expire on January 1, 2016.
On January 1, 2015, when the market price of the stock was $29 per
share, all 40,000 options were exercised. The amount of