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# 240000 3 shares issued for cash on 2000000 number of

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240,000 3. Shares issued for cash on March 31, 2013 2,000,000 Number of common shares issued and outstanding at December 31, 2013 4,640,000 4. A 2-for-1 stock split of Gogean’s common stock took place on March 31, 2014 Instructions: Text title Formula Text title Percentage Text title Formula Text title Formula Shares outstanding Formula Text title Formula Text title Formula Shares outstanding Formula Text title Formula Text title Number Shares outstanding Formula Text title Number Text title Number Text title Formula Text title Formula Shares outstanding Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E16-15 (Weighted-Average Number of Shares) Gogean Inc. uses a calendar year for financial par common stock. At no time has Gogean issued any potentially dilutive securities. Listed below is a summary of Gogean’s common stock activities. (a) Compute the weighted average number of common shares used in computing earnings per common share for 2012 on the 2013 comparative income statement. (b) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2013 comparative income statement. (c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2013 on the 2014 comparative income statement. (d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2014 comparative income statement.

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0eaa0a329e22b0a9ab0afeb0943e225b5f4c0e17.xlsx, Problem 16-2 Solution, Page 5 of 8, 03/29/2012, 01:32:15 Name: Solution Date: Instructor: Course: \$2,500,000 of convertible 10 -year bonds on July 1, 2012. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was \$54,000 , which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Volker Inc.'s \$100 par value common stock for each \$1,000 of bonds. On August 1, 2013, \$250,000 of bonds were turned in for conversion into common stock. Instructions: Aug 1, 13 Bonds Payable 250,000 Discount on Bonds Payable (Schedule 1) 4,815 Common Stock (8 shares × 250 bonds × \$100 par) 200,000 45,185 *(\$54,000 × 1/10) × (107/120) = \$4,815 **(\$250,000 – \$4,815) – \$200,000 = \$45,185 Aug 1, 13 Interest Payable 2,500 Cash [\$250,000 × 12% × (1/12)] 2,500 Aug 31, 13 Interest Expense 405 Discount on Bonds Payable (Schedule 1) 405 (To record amortization of one month’s discount on \$2,250,000 of bonds) *(\$54,000 × 90%) × (1/120) = \$405 Aug 31, 13 Bond Interest Expense 22,500 Interest Payable [\$2,250,000 × 12% × (1/12)] 22,500 (To record accrual of interest for August on \$2,250,000 of bonds at 12%) (Same as August 31, 2013, and the following closing entry) Dec 31, 13 Income Summary 292,675 Interest Expense 292,675 (To close expense account) Schedule 1 - Monthly Amortization Schedule Unamortized discount on bonds payable: Amount to be amortized over 120 months \$54,000 Amount of monthly amortization (\$54,000 / 120) 450 Amortization for 13 months to Jul 31, 2013, (\$450 × 13) 5,850 Balance unamortized Jul 31, 2013, (\$54,000 – \$5,850) 48,150 10% applicable to bonds converted 4,815 Balance Aug 1, 2013 43,335 Remaining monthly amortization over remaining 107 months \$405 Schedule 2 Interest Expense Schedule
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