solutions to test 1

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

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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
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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...
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