Assignment 3

# Assignment 3 - Problem 1 a x0 Cash 21,300,000 Bonds payable...

• No School
• AA 1
• 3

This preview shows page 1 - 3 out of 3 pages.

Problem 1 a. Dec 31, 20x0: Cash 21,300,000 Bonds payable 20,532,086 Contributed surplus-conversion right 767,914 FV = 20,000,000 PMT = 500,000 (20,000,000*5%/2) N = 30 (15*2) I = 2.375% (4.75/2) PV = 20,532,086 b. July 2, 20x8: Bonds payable 8,049,708 Contributed surplus-conversion right 307,166 Common shares 8,356,874 (20,124,270*40%) (767,914*40%) FV = 20,000,000 PMT = 500,000 (20,000,000*5%/2) N = 15 I = 2.45% (4.9/2) PV = 20,124,270 c. Dec 31, 20x0: Cash 21,300,000 Interest liability on bonds 10,641,716 Contributed surplus-convertible bonds 10,658,284 June 30, 20x1: Interest expense 252,741 Interest liability on bonds 247,359 Cash 500,000 Dec 31, 20x1: Interest expense 246,868 Interest liability on bonds 253,132 Cash 500,000 Dec 30, 20x15: Contributed surplus-convertible bonds 10,658,284 Common shares 10,658,284 FV = 0 PMT = 500,000 N = 30 I = 2.375% PV = 10,641,716 (10,641,716*2.375%) (500,000-252,741) (10,641,716-247,359)*2.375% (500,000- 246,868) Problem 2 a. Plan # Estimated % vesting as at December 31, 20x3 Calculation A1004 90% 238,000/(28/36)*340000 A1005 91% 228,258/(21/26)*430,000

Subscribe to view the full document.

A1006 83.3% 66,673/(7/24)*275,000 b. 1004: Estimated % vesting as at December 31, 20x4 : 53,600/60,000 : 0.8933----> 89.33% Dec 31,20x4: A1004: Compensation expense 65,722 Contributed surplus - stock option 65,722 A1005: Compensation expense 134,375 Contributed surplus - stock option 134,375 A1006: Compensation expense 118,379 Contributed surplus - stock option
• Fall '19
• NoProfessor
• 1966, 1944

{[ snackBarMessage ]}

###### "Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern