External report 2

4. Manchester Company issued 1,000 bond each with a par value of $1,000 and each carry a detachable warrant for the purchase of 3 shares of $40 each. On the date of the bond issue, the bonds could have been at 102, and the warrants could have been sold for $60 each separately. The bond was issued for $1,025,000 on January 5,2020.

1. Prepare a schedule allocating the bond issue receipts To the bond and the warrants.

Use the proportional method.

2. Record the issue of the two securities using the proportional method.

5. Barre company had an income of $500,000 net of tax but before extraordinary items in 2020. They had an extraordinary lose of $100,000 net of tax. They had 10,000 shares of convertible preferred $100 par stock, 6% Dividend, with one years dividend in arrears, convertible into 20,000 shares of common stock. Barres weighted average shares for 2020 were 100,000 shares. The tax rate is 20%.

Prepare in god format earnings per share calculation for 2020 on all necessary part of income.

6.Montpelier Company has the following information at December 31,2020.

Common Stock, 1,000,000 share authorized, 400,000 shares issued, $2 par Preferred stock , 200,00 shares authorized, 100,00 share issued, $10 par, 6% dividend Common Stock Dividend Distributatble ,$250,000

Cash Dividend Payable , $200,000

Additional Paid in Capital Common $2,000,000

Additional Paid in Capital, Preferred, $1,000,000

Retained Earnings, $5,000,000
Treasury Stock, 40,000 shares, at cost $300,000

Prepare in proper format the stockholder equity section of Montpelier for Dec 31, 2020.