18.On January 1, 2020, Creddit, Inc. issued 10-year, $2,000,000 face value, 6% bonds, at par.Each $1,000 bond is convertible into 18 shares of Creddit common stock.Creddit's net income in 2020 was $425,000, and its tax rate was 35%. The company had 100,000 shares of common stock outstanding throughout 2020.None of the bonds were converted in 2020.

Instructions:

a.Compute earnings per share for 2020(round to nearest cent)

b.Computer diluted earnings per share for 2020 (round to nearest cent)

Answer A ______

Answer B ______

19.Requirement:Calculate the issue price of bonds (show work)

Principal $150,000

Term Payable in 5 years

Interest Payable 8% payments due at end of each year

Market at issue date 10%

20.

Required:Calculate Accumulated Depreciation - Machine at December 31, 2020 Using Declining Balance(show work)

Data:

Cost of machine$600,000

Estimated useful life5 Years

Estimated salvage value$25,000

Double Declining200%

Purchase Date January 1, 2019

Aging of Accounts Receivable - Balance Sheet Method (15 points)

Use the following information and complete required items 1-3

The accounts receivable listing of StartUp Company shows the following on December 31, 2020.

The general ledger showed a $250 credit balance in Allowance for Doubtful Accounts before adjustment

Name of customer Invoice date Amount

Speals Inc. December 5, 2020 $750

Siron Corporation August 11, 2020 425

Screen Corporation December 11, 2020 475

Bean Inc. July 3, 2020 200

Apples Inc. September 16, 2020 505

Apples Inc. July 4, 2020 875

Window Inc. March 3, 2020 625

Trail Corporation November 14, 2020 825

Spokes Inc. November 20, 2020 325

Winter Corporation October 19, 2020 700

Required:

1. Pre pare an aging of accounts receivable at December 31, 2020

2.Compute estimated loss based on the following:

Age (days) Estimated Loss Percentage

1-30 2%

31-60 3%

61-90 10%

91-120 15%

121-150 25%

Over 150 50%

3. Prepare a journal entry to record the bad debt expense for the year.