22.Un January 1, Patterson Inc. issued $4,000,000,9% bonds for $3,755,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the first year, Patterson should report unamortized bond discount of a. $245,000. b. S235,000. c. $229,500 d. S212,450. 23. Fogel Co. has $4,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2018, the holders of $1,600,000 honds exercised the conversion privilege. On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $280,000. Fogel should record, as a result of this conversion, a a loss of $12,800. b. credit of S202,000 to Paid-in Capital in Excess of Par. c. credit of S272,000 to Paid-in Capital in Excess of Par. d. credit of $112,000 to Premium on Bonds Payable. 24.On March 1, 2018, Ruiz Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2038. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 onc share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2018, the fair value of Ruiz's common stock was $40 per share and the fair value of the warrants was $2.00. What amount should Ruiz record on March 1, 2018 as paid-in capital from stock warrants? a $73,600 b. $85,200 c. $104,000 d. $100,000 25.At December 31, 2018, Hancock Company had 500,000 shares of common stock issued and outstanding. 400,000 of which had been issued and outstanding throughout the year and 100.000 of which were issued on July 1, 2018. Net income for the year ended December 31, 2018, was $1,700,000. What should be Haricock's 2018 carnings per common share, Tuundod to the nearest penny? a $4.25 b. $3.40 c. $3.65 d. $3.78 26.On January 1, 2018, Gridley Corporation had 375,000 sbures of its $2 par value common stock outstanding. On March 1, Gridley sold an additional 750,000 shares on the open market al $20 per share. Gridley issued a 50% stock dividend on May 1. Ou August 1, Gridley purchased 420,000 shares and immediately retired the stock. On November 1, 600,000 shares were sold for S25 per share. What is the weighted average number of shares outstanding for 2018? a. 1,530,000 b. 1,125.000 c. 925,000 d. 1.425,000 27. Kascai Co. had net incorre for 2018 of 5800.000. The average number of shares outstanding for the period was 300,000 shares. The average number of shares under oliestanding options, it an option price of $25 per share is 15.000 shares. The average markol price of the common stock during the year was $30. What should Kascavi Co. report for diluted carnings per share for the year ended 2018? a $2.67 b. $2.3 c. $2.64 d. $2.56 22.Un January 1, Patterson Inc. issued $4,000,000,9% bonds for $3,755,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the first year, Patterson should report unamortized bond discount of a. $245,000. b. S235,000. c. $229,500 d. S212,450. 23. Fogel Co. has $4,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2018, the holders of $1,600,000 honds exercised the conversion privilege. On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $280,000. Fogel should record, as a result of this conversion, a a loss of $12,800. b. credit of S202,000 to Paid-in Capital in Excess of Par. c. credit of S272,000 to Paid-in Capital in Excess of Par. d. credit of $112,000 to Premium on Bonds Payable. 24.On March 1, 2018, Ruiz Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2038. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 onc share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2018, the fair value of Ruiz's common stock was $40 per share and the fair value of the warrants was $2.00. What amount should Ruiz record on March 1, 2018 as paid-in capital from stock warrants? a $73,600 b. $85,200 c. $104,000 d. $100,000 25.At December 31, 2018, Hancock Company had 500,000 shares of common stock issued and outstanding. 400,000 of which had been issued and outstanding throughout the year and 100.000 of which were issued on July 1, 2018. Net income for the year ended December 31, 2018, was $1,700,000. What should be Haricock's 2018 carnings per common share, Tuundod to the nearest penny? a $4.25 b. $3.40 c. $3.65 d. $3.78 26.On January 1, 2018, Gridley Corporation had 375,000 sbures of its $2 par value common stock outstanding. On March 1, Gridley sold an additional 750,000 shares on the open market al $20 per share. Gridley issued a 50% stock dividend on May 1. Ou August 1, Gridley purchased 420,000 shares and immediately retired the stock. On November 1, 600,000 shares were sold for S25 per share. What is the weighted average number of shares outstanding for 2018? a. 1,530,000 b. 1,125.000 c. 925,000 d. 1.425,000 27. Kascai Co. had net incorre for 2018 of 5800.000. The average number of shares outstanding for the period was 300,000 shares. The average number of shares under oliestanding options, it an option price of $25 per share is 15.000 shares. The average markol price of the common stock during the year was $30. What should Kascavi Co. report for diluted carnings per share for the year ended 2018? a $2.67 b. $2.3 c. $2.64 d. $2.56