answers to test 1 - 2000 Treasury Stock (1000*36) 36000...

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Question 1 cash Interest Amortization $10,817,572.00 6/1/2011 250000 $216,351.44 $33,648.56 $10,783,923.44 12/31/2011 250000 $215,678.47 $34,321.53 $10,749,601.91 6/1/2012 250000 $214,992.04 $35,007.96 $10,714,593.95 12/31/2012 250000 $214,291.88 $35,708.12 $10,678,885.83 1/1/2011 Cash $10,817,572.00 Prem on Bond Payable 817572 bond Payable 10000000 12/31/2012 Interest Expense $214,291.88 Prem on bond Payable $35,708.12 Cash 250000 1/1/2013 Bond Payable 10000000 Prem on Bond Payable 678886 Gain on bond disposal 178886 Cash 10500000 Question 2 a Treasury Stock (5000*36) 180000 Cash 180000 b Cash (3000*36) 108000 Treasury Stock (3000*36) 108000 c Cash (1000*30) 30000 Retained Earnings 6000 Treasury Stock (1000*36) 36000 d Common Stock (1000*5) 5000 Excess of Par-CS (1000*29) 29000 Retained Earnings (plug)
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Unformatted text preview: 2000 Treasury Stock (1000*36) 36000 Question 3 Weighted Average shares 65000 0.25 2 32500 58000 0.4166666667 2 48333.33333333 61000 0.1666666667 2 20333.33333333 122000 0.1666666667 1 20333.33333333 121500 Treasury Stock Method Options 40000 35 1400000-31111 8889 Bonds conversions 85000 6% 5100 interest Expense =interest expense*(1-.3)/# of shares if converted =5100*.7 / =14*85 3570 1190 3 Basic = (net Income - claims of preferred stockholders)/wtavg # of shares cs =(1100000-(120000*.06))/121500 8.994239 With options =(1100000-(120000*.06))/(121500+8889) 8.381075 Bonds still dilutive with bonds =(1100000-(120000*.06)+3570)/(121500+8889+1190) 8.332409 Diluted eps...
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