1.

A company had 700,000 shares of common stock outstanding on January 1, issued 126,000 shares on May 1, purchased 63,000 shares of treasury stock on September 1, and issued 54,000 shares on November 1. The weighted average shares outstanding for the year is

751,000

814,000

772,000

793,000

none of these answers are correct

2 A company had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 5% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, the company paid dividends of $.60 per share on the common stock and $2 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2015 was $400,000 and the income tax rate was 30%. Basic earnings per share for 2015 is (rounded to the nearest penny)

$1.61

$1.80

$1.47

none of these answers are correct

$1.67

3

A Company issued $4,000,000 of 9%, ten-year convertible bonds on July 1, 2014 at 96.1 plus accrued interest. The bonds were dated April 1, 2014 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2015, $800,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. If we assume that Interest Payable was credited when the bonds were issued, what should be the amount of the debit to Interest Expense on October 1, 2014?

none of these answers are correct

$ 94,000.

$ 90,000.

$ 86,000.

$180,000.