General Instructions for the Traditional Homework (refer to the instructions for traditional item nos. 9 to 12) 13. (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 G's $1 par value common stock. At the time of the conversion, one share of G's common stock was trading for $124 per share. G only prepares AJEs every December 31. Prepare the entries G should make on: (a) 07-01-14 (Issuance) Issuance Costs $45,000 Market Rate 2.25% Stated Rate 2% A Cash L Discount on Bonds Payable L Bonds Payable 5,000,000 364,143 5,364,143 (b) 12-31-14 (AJE) 65,543 EX Interest Expense L Discount L Interest Payable 34,457 100,000 (C) 12-31-17 (AJE) EX Interest Expense Premium L Interest Payable 62,939 37,061 100,000 (d) 01-01-18 (Convert) L Bonds Payable L Premium on Bonds Payable (25% of 5,000,000) EQ Common Stock (12,500 x $1) EQ Paid-in Capital in Excess of Par - Common Stock 1,250,000 12,500 (e) 12-31-18 (AJE) 1 14. (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. H's net income for 2014 was $1,975,000. H's income tax rate is 20%. What will I report as basic EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY. EPS Calculation: General Instructions for the Traditional Homework (refer to the instructions for traditional item nos. 9 to 12) 13. (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 G's $1 par value common stock. At the time of the conversion, one share of G's common stock was trading for $124 per share. G only prepares AJEs every December 31. Prepare the entries G should make on: (a) 07-01-14 (b) 12-31-14 (c) 12-31-17 (d) 01-01-18 (e) 12-31-18 14. (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. General Instructions for the Traditional Homework (refer to the instructions for traditional item nos. 9 to 12) 13. (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 G's $1 par value common stock. At the time of the conversion, one share of G's common stock was trading for $124 per share. G only prepares AJEs every December 31. Prepare the entries G should make on: (a) 07-01-14 (Issuance) Issuance Costs $45,000 Market Rate 2.25% Stated Rate 2% A Cash L Discount on Bonds Payable L Bonds Payable 5,000,000 364,143 5,364,143 (b) 12-31-14 (AJE) 65,543 EX Interest Expense L Discount L Interest Payable 34,457 100,000 (C) 12-31-17 (AJE) EX Interest Expense Premium L Interest Payable 62,939 37,061 100,000 (d) 01-01-18 (Convert) L Bonds Payable L Premium on Bonds Payable (25% of 5,000,000) EQ Common Stock (12,500 x $1) EQ Paid-in Capital in Excess of Par - Common Stock 1,250,000 12,500 (e) 12-31-18 (AJE) 1 14. (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. H's net income for 2014 was $1,975,000. H's income tax rate is 20%. What will I report as basic EPS for the year ended 12-31-14? ROUND TO NEAREST PENNY. EPS Calculation: General Instructions for the Traditional Homework (refer to the instructions for traditional item nos. 9 to 12) 13. (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 G's $1 par value common stock. At the time of the conversion, one share of G's common stock was trading for $124 per share. G only prepares AJEs every December 31. Prepare the entries G should make on: (a) 07-01-14 (b) 12-31-14 (c) 12-31-17 (d) 01-01-18 (e) 12-31-18 14. (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