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MGT131Bhw4 - 28300 b When the warrants are non-detachable...

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HW # 4 MGT131B Alexander wallin  Q16-13 Compensation cost should be allocated during the period of time from anouncement until the compensation is exausted (during the  service period) E16-2 a) Interest payable 50000 Interest exp. 102034 Cash 150000 Discount bonds payable 2034 b) Bonds payable  1000000 discount on bonds payable 18305 Common stock 600000 Aditional paid-in capital excess of p 381695 E16-7 a) Cash 157500 Discount on bonds payable 45800 Bonds payable 175000 Paid-in capital stock warrants
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Unformatted text preview: 28300 b) When the warrants are non-detachable the entry becomes the same as for a regular bond with convertible debt. Cash 157500 Discount payable 17500 Bonds payab 175000 E16-18 Shares outstaFraction of year Weighted shares common stock 600000 600000 5/12 250000 issued 5/1 300000 900000 3/12 225000 Aquired 8/1 150000 750000 2/12 125000 2-1 stock split 1 750000 1500000 2/12 250000 Total 1500000 850000 Net income 2200000 EPS 2.59...
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