ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COM ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DO | Page 16

sheet? A. At the face amount. B. At the face amount with a separate deferred asset for the discount calculated at the imputed interest rate. C. At the face amount with a separate deferred credit for the discount calculated at the imputed interest rate. D. At the face amount minus a discount calculated at the imputed interest rate. 2 7. Based on the stock transactions below, what is the weighted average number of shares outstanding as of December 21, Year 1, that should be used in the calculation of basic earnings per share in the financial statements issued on March 1, Year 2? Date January 1, Year 1 April 1, Year 1 June 1, Year 1 February 15, Year 2 March 15, Year 2 A. B. C. D. Transactions Beginning Balance 100,000 Issued 30,000 shares for cash 50 % stock dividend 2-for-1 stock split Issued 40,000 shares for cash 147,500 183,750 295,000 367,500 8. On January 1, 2016, a company’ s new president was awarded a $ 200,000 bonus that would be paid out in two $ 100,000 installments in 2018( year 3) and 2019( year 4) of employment, contingent on employment through the year ending December 31, 2017. How much should the company expense for this bonus in 2017 and