Assignment 3

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

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
Image of page 1

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
Image of page 2
Image of page 3
  • Fall '19
  • NoProfessor
  • 1966, 1944

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"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

Ask a question for free

What students are saying

  • Left Quote Icon

    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.

    Student Picture

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

  • Left Quote Icon

    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.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    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.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern