chpt 16 final -...

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Dilute securities are those that upon exercise may reduce dilute earnings per share such as, convertib 8) Cash 3,000,000 Discount on Bonds Payable 100,000 Bonds payable 3,000,000 Paid in capital stock warrants 100,000 18) Basic earnings per share is the amount of earnings for the period available to each share of common b) A potentially dilutive security is one that can be exchanged for or converted into common stock and c) Diluted earnings per share is the amount of earnings for the period available to each share common d) A complex capital structure exists whenever a company’s capital structure includes dilutive securitie e) Potential common stock is one that allows its holders to obtain common stock when exercising. BE1 Cash 3,960,000 discount on bonds payable 40,000 bonds payable 4,000,000 BE2 Bonds payable 2,000,000 discount on bonds payable 30,000 common stock 1,000,000 paid in capital in excess of par 970,000 BE3 Preferred Stock 50,000 paid in capital in excess of par 10,000
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This note was uploaded on 04/14/2011 for the course ACCT 3202 taught by Professor Kenmichael during the Spring '11 term at University of Minnesota Duluth.

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chpt 16 final -...

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