AC301 A8
silers2
ac301_a8.docxBrief Exercise 16-11
Tomba Corporation had 531,900 shares of common stock outstanding on January 1, 2014. On May 1, Tomba issued 57,900 shares. (a) Compute the weighted-average number of shares outstanding if the 57,900 shares were issued for cash.
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Weighted-average number of shares outstanding |
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$
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(b) Compute the weighted-average number of shares outstanding if the 57,900 shares were issued in a stock dividend.
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Weighted-average number of shares outstanding |
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$
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Click if you would like to Show Work for this question: |
Exercise 16-25
On January 1, 2014, Crocker Company issued 10-year, $3,637,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 18 shares of Crocker common stock. Crocker’s net income in 2014 was $285,000, and its tax rate was 45%. The company had 103,000 shares of common stock outstanding throughout 2014. None of the bonds were converted in 2014. (a) Compute diluted earnings per share for 2014. (Round answer to 2 decimal places, e.g. $2.55.)
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Diluted earnings per share |
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$
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(b) Compute diluted earnings per share for 2014, assuming the same facts as above, except that $1,030,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 10 shares of Crocker common stock. (Round answer to 2 decimal places, e.g. $2.55.)
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Diluted earnings per share |
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$
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Click if you would like to Show Work for this question: |
Exercise 16-29
On December 31, 2010, Beckford Company issues 125,600 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $9. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2011; $1 on December 31, 2012; $10 on December 31, 2013; and $9 on December 31, 2014. The service period is 4 years, and the exercise period is 7 years. (a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. -25,000 or (25,000).)
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Fair Value |
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Cumulative Compensation Recognizable |
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Percentage Accrued |
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Compensation Accrued to Date |
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Expense 2011 |
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Expense 2012 |
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Expense 2013 |
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Expense 2014 |
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12/31/11 |
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$
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$
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% |
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$
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$
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$
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$
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$
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12/31/12 |
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12/31/13 |
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12/31/14 |
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$
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(b) Prepare the entry at December 31, 2014, to record compensation expense, if any, in 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Account Titles and Explanation |
Debit |
Credit |
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(c) Prepare the entry on December 31, 2014, assuming that all 125,600 SARs are exercised. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Account Titles and Explanation |
Debit |
Credit |
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