(b) All the entries would be the same except the account title Debt Investments (held-to-maturity) would be used instead of Debt Investments (available-for-sale). This procedure is correct, assuming that when the cash is received for the interest, an appropriate credit to Interest Receivable is recorded.)
(Note: Some students may debit Interest Receivable at date of purchase instead of Interest Revenue. Total Fair Value = $414,000 Total Unrealized Gain (loss) = $(26,000) Unrealized Holding Gain or Loss-Equity 26,000įair Value Adjustment (available-for-sale) 26,000 If Wildcat classified these as held-to-maturity investments, explain how the journal entries would differ from those in part a.ĭebt Investments (available-for-sale) 300,000 prepare any journal entries you consider necessary, including year-end entries, assuming these are available-for-sale securitiesī. 31st, the fair value of the bonds purchased Feb 1 and July 1 are 95 and 93, respectivelyĪ.
Zevera premium account 15 nov2017 plus#
1, are sold at 99 plus accrued interest.ĥ. 1 bonds with a par value of $60,000 purchased on Feb. These bonds with a par value of $200,000 were purchased at 100 plus accrued interest. on April 1, semiannual interest is receivedģ.On July 1, 9% bonds of Sampson, Inc. having a par value of $300,000 at 100 plus accrued interest. 1, the company purchased 10% bonds of Gibbons Co. P17-7 The following information relates to the debt securities investments of Wildcat Company.ġ. As indicated above, the preferred is anti-dilutive, so we stop. This is less than basic EPS continue to bonds: $1.54 (see (b) above) which is less than diluted EPS with the options, so include. Note: This problem can be used to apply the procedures in Appendix 17B for analysis of multiple dilutive securities.įirst, compute the dilutive effect for each security and rank from smallest to largest:Ĭonvertible bonds: $84,000/60,000 = $1.40 = $1,200,000 + $84,000ĬMarket price - Option price X Number of options = incremental shares 06) and the denominator 120,000 shares as shown in the following:ĭiluted EPS with preferred. That is, conversion of the preferred stock increases the numerator $240,000 ($4,000,000 X. Weighted-average number of shares outstanding + Potentially dilutive common sharesĪPreferred stock is not included since conversion would be antidilutive. (b) Diluted EPS = (Net income - Preferred dividends) + Interest savings (net of tax) Assume the same facts as in part b, except the net income included a loss form discounted operations of $432,000. Assume the same facts as in part b, except that the [referred stock was cumulative. Compute earnings per share for 2018 using the weighted-average number of shares determined in part a.Ĭ. Because of liquid considerations, however, the company did not declare and pay a preferred dividend in 2018. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Assume that Wilke Corp, earned net income of $3,456,000 during 2018.
determine the weighted-average number of shares outstanding as of Dec 31 2018.ī. 1 Reissued 60,000 shares of treasury stockĪ. Acquired 100,000 shares of treasury stock During 2018, it had the following transactions that affected the common stock account. had 480,000 shares of common stock outstanding.
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