solutions to test 1

solutions to test 1 - 10000 shares that can be purchased...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Test 1 answers Spring 2009 Acct3312 Problem 1 CV 10/1/2006 Cash Interest Amort. $738,224 4/1/2007 $32,000 $36,911 $4,911 $743,135 3 points interest expense 10/1/2007 $32,000 $37,157 $5,157 $748,292 3 points interest expense 4/1/2008 $32,000 $37,415 $5,415 $753,707 3 points interest expense Interest Expense $18,707 5 points proper accounts Discount on Bond Payable $2,707 5 points correct amounts Interest Payable $16,000 Interest Expense for 2007 50% of $36,911 $18,455.60 100% of $37,157 $37,157 -5 if $74,068 50% of $37,415 $18,707.30 -5 if $74,572 $74,319.66 Problem 2 Basic EPS = (Net Income - Claims of Preferred Stock) / Wt. Avg Shares CS $1.40 280000 0 200000 15 points Warrants 16000 shares @ $20 per 320000 proceeds
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 10000 shares that can be purchased with proceeds 6000 1.36 280000 206000 Bonds (Interest Expense X (1-tax rate) / # of shares CS if converted 18000 0.7 15000 0.84 12600 15000 Dilutive Diluted EPS = (280000 + 12600) / (200000 + 6000 + 15000) 3 points each 1.32 15 points Problem 3 a 10 pts Treasury Stock (5000 X $29) $145,000 Cash $145,000 b. 10 pts Cash (2,500 X $30) $75,000 Contributed Capital - Treasury Stock $2,500 Treasury Stock (2,500 X $29) $72,500 c. 10 pts Cash (1,000 X $26) $26,000 Contributed Capital - Treasury S. $2,500 Retained Earnings $500 5 pts Treasury Stock (1,000 X $29) $29,000...
View Full Document

Ask a homework question - tutors are online