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(4 points) G issued $5,000,000 of 2%, 5-year convertible bonds on 07-01-14 when the market rate for similar bonds was 2.25%. The bonds were dated
- (4 points) G issued $5,000,000 of 2%, 5-year convertible bonds on 07-01-14 when the market rate for similar bonds was 2.25%. The bonds were dated 07-01-14 with interest payable January 01 and July 01. G incurred and paid $45,000 of bond issuance costs. On 01-01-18 after making its interest payments, 25% of the bonds were converted into 12,500 shares of Gs $1 par value common stock. At the time of the conversion, one share of Gs common stock was trading for $124 per share. G only prepares AJEs every December 31. Prepare the entries G should make on:
- 07-01-14
- 12-31-14
- 12-31-17
- 01-01-18
- 12-31-18
- (3 points) On 01-01-14, H had 900,000 shares of common stock outstanding. The following common stock-related transactions occurred during 2014:
- On March 1, H issued 36,000 shares of its common stock.
- On June 30, H declared and distributed a 5% stock dividend.
- On October 31, H reacquired 18,000 shares of its common stock.
Hs net income for 2014 was $1,975,000. Hs income tax rate is 20%. What will H report as basic EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY.
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