Name: Date: Instructor: Course: Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield "E16-1 (Issuance and Conversion of Bonds) Instructions: For each of the unrelated transactions described below, present the entry(ies) required to record each transaction." 1. Grand Corp. issued $20,000,000 par value 10% convertible bonds at 99 If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95 Expenses of issuing the bonds were $70,000 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Account Title Amount 2. Hoosier Company issued $20,000,000 par value 10% bonds at 98 One detachable stock warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Text title Formula Text title Formula Text title Formula "3. Suppose Sepracor, Inc. called its convertible debt in 2014. Assume the following related to the transaction: " The 11% $10,000,000 par value bonds were converted into 1,000,000 shares of $1 par value common stock on July 1, 2014. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. Account Title 75000 Amount Account Title 10000000 Amount Account Title Amount Account Title Amount Account Title Formula Account Title Amount * Calculation as desired. E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton?s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2012 2,000,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2013 200,000 3. Shares issued for cash on March 31, 2014 2,000,000 Number of common shares issued and outstanding at December 31, 2014 4,200,000 4. A 2-for-1 stock split of Gogean?s common stock took place on March 31, 2015 Instructions: "(a) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement." Text title Formula Text title Percentage Text title Formula Text title Formula Shares outstanding Formula "(b) Compute the weighted average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement." Text title Formula Text title Formula Shares outstanding Formula "(c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement." Text title Formula Text title Number Shares outstanding Formula "(d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement." Text title Number Text title Number Text title Formula Text title Formula Shares outstanding Formula P16-2 (Entries for Conversion, Amortization, and Interest of Bonds) Volker Inc. issued $2,500,000 of convertible 10 -year bonds on July 1, 2014. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $54,000 , which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Volker Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2015, $250,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion any accrued interest on bonds being converted is paid in cash. Note: Due to rounding and significant digits, there may be slight number differences. Instructions: Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates: (Round to the nearest dollar.) (a) August 1, 2015. (Assume the book value method is used.) Aug 1, 15 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Enter entry memorandum. Area for calculations as desired. Area for calculations as desired. Aug 1, 15 Account Title Amount Account Title Amount Enter entry memorandum. (b) August 31, 2015. Aug 31, 15 Account title Formula Account title Amount Enter entry memorandum. Area for calculations as desired. Aug 31, 15 Account Title 22,500 Account Title Amount Enter entry memorandum. (c) December 31, 2015, including closing entries for end-of-year. Dec 31, 15 Account Title Amount Account Title Amount Enter entry memorandum. Schedule 1 - Monthly Amortization Schedule Unamortized discount on bonds payable: Amount to be amortized over 120 months Amount Text title Formula Text title Formula Text title Formula Text title Formula Text title Formula Text title Formula Schedule 2 Interest Expense Schedule Amortization of bond discount charged to bond interest expense in 2015 would be as follows: Text title Formula Text title Formula Total Formula Interest on Bonds: Text title Formula Text title Formula Text title Formula Text title Formula Interest for 2015 would be as follows: Text title Formula Text title Formula Total Formula Total interest Text title Formula Text title Formula Text title Formula P16-3 (Stock-Option Plan) Berg Company adopted a stock-option plan on November 30, 2013, that provided that 70,000 shares of $5.00 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9.00 a share. The market price was $12.00 a share on November 30, 2014. On January 2, 2014, options to purchase 28,000 shares were granted to president Tom Winter - 15,000 for services rendered in 2014 and 13,000 for services to be rendered in 2015. Also on that date, options to purchase 14,000 shares were granted to vice president Michelle Bennett - 7,000 for services to be rendered in 2014 and 7,000 for services to be rendered in 2015. The market value of the stock was $14 a share on January 2, 2014. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option. In 2015 neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market value of the stock was $8 a share on December 31, 2015, when the options for 2014 services lapsed. On December 31, 2016 both president Winter and vice president Bennett exercised their options for 13,000 and 7,000 shares, respectively, when the market price was $16 a share. Instructions: Prepare the necessary journal entries in 2013 when the stock-option plan was adopted, in 2014 when options were granted, in 2015 when options lapsed, and in 2016 when options were exercised. Enter text answer here. Jan 2, 14 Enter text answer as appropriate. Dec 31, 14 Account title Amount Account title Amount Dec 31, 15 Account Title Amount Account Title Amount Dec 31, 15 Account Title Amount Account Title Amount Dec 31, 16 Account Title Amount Account Title Amount Account Title Amount Account Title Amount

Name: Date: Instructor: Course: Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield E16-1 (Issuance and Conversion of Bonds) Instructions: For each of the unrelated transactions described below, present the entry(ies) required to record each transaction. 1. Grand Corp. issued $20,000,000 par value 10% convertible bonds at 99 If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95 Expenses of issuing the bonds were $70,000 Account Title Account Title Account Title Amount Amount Account Title Account Title Amount 2. Hoosier Company issued $20,000,000 par value One detachable stock warrant was issued with each of issuance, the warrants were selling for Account Title Account Title Account Title Account Title Amount Amount 10% $100 $4 bonds at 98 par value bond. At the time Amount Amount Amount Amount Text title Text title Text title Formula Formula Formula 3. Suppose Sepracor, Inc. called its convertible debt in 2014. Assume the following related to the 11% $10,000,000 par value bonds were converted into 1,000,000 transaction: The shares of $1 par value common stock on July 1, 2014. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. Account Title Account Title Account Title Account Title Account Title Account Title * Calculation as desired. Amount Amount Amount Amount Formula Amount qattachments_e45a883db3db2aef5f382fc06a52e2a1383cf284.xlsx, Exercise 16-1, Page 1 of 4, 10/14/2014, 09:25:58 Name: Date: Instructor: Course: Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial 9,000,000 $10 shares of reporting. The company is authorized to issue par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton's common stock activities. 1. Number of common shares issued and outstanding at December 31, 2012 2,000,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2013 200,000 3. Shares issued for cash on March 31, 2014 2,000,000 Number of common shares issued and outstanding at December 31, 2014 4,200,000 4. A 2-for-1 stock split of Gogean's common stock took place on March 31, 2015 Instructions: (a) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement. Text title Text title Text title Text title Shares outstanding Formula Percentage Formula Formula Formula (b) Compute the weighted average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement. Text title Text title Shares outstanding Formula Formula Formula (c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement. Text title Text title Shares outstanding Formula Number Formula (d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement. Text title Text title Text title Text title Shares outstanding Number Number Formula Formula Formula qattachments_e45a883db3db2aef5f382fc06a52e2a1383cf284.xlsx, Exercise 16-15, Page 2 of 4, 10/14/2014, 09:25:58 Name: Date: Instructor: Course: Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield P16-2 (Entries for Conversion, Amortization, and Interest of Bonds) Volker Inc. issued $2,500,000 of convertible 10 -year bonds on July 1, 2014. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $54,000 , which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Volker Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2015, $250,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion any accrued interest on bonds being converted is paid in cash. Note: Due to rounding and significant digits, there may be slight number differences. Instructions: Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates: (Round to the nearest dollar.) (a) August 1, 2015. (Assume the book value method is used.) Aug 1, 15 Amount Account Title Account Title Account Title Account Title Amount Amount Amount Enter entry memorandum. Area for calculations as desired. Area for calculations as desired. Aug 1, 15 Amount Account Title Account Title Enter entry memorandum. Amount (b) August 31, 2015. Aug 31, 15 Formula Account title Account title Enter entry memorandum. Amount Area for calculations as desired. Aug 31, 15 22,500 Account Title Account Title Enter entry memorandum. Amount (c) December 31, 2015, including closing entries for end-of-year. Dec 31, 15 Amount Account Title Account Title Enter entry memorandum. Amount Schedule 1 - Monthly Amortization Schedule Unamortized discount on bonds payable: Amount to be amortized over 120 months Text title Text title Text title Text title Text title Text title Amount Formula Formula Formula Formula Formula Formula Schedule 2 Interest Expense Schedule Amortization of bond discount charged to bond interest expense in 2015 would be as follows: Text title Formula Text title Formula Total Formula Interest on Bonds: Text title Text title Text title Text title Interest for 2015 would be as follows: Text title Text title Formula Formula Formula Formula Total Total interest Text title Text title Text title Formula Formula Formula Formula Formula Formula qattachments_e45a883db3db2aef5f382fc06a52e2a1383cf284.xlsx, Problem 16-2, Page 3 of 4, 10/14/2014, 09:25:58 Name: Date: Instructor: Course: Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield P16-3 (Stock-Option Plan) Berg Company adopted a stock-option plan on November 30, 2013, that provided that 70,000 shares of $5.00 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9.00 a share. The market price was $12.00 a share on November 30, 2014. On January 2, 2014, options to purchase 28,000 shares were granted to president Tom Winter 15,000 for services rendered in 2014 and 13,000 for services to be rendered in 2015. Also on that date, options to purchase 14,000 shares were granted to vice president Michelle Bennett 7,000 for services to be rendered in 2014 and 7,000 for services to be rendered in 2015. The market value of the stock was $14 a share on January 2, 2014. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option. In 2015 neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market value of the stock was $8 a share on December 31, 2015, when the options for 2014 services lapsed. On December 31, 2016 both president Winter and vice president Bennett exercised their options for 13,000 and 7,000 shares, respectively, when the market price was $16 a share. Instructions: Prepare the necessary journal entries in 2013 when the stock-option plan was adopted, in 2014 when options were granted, in 2015 when options lapsed, and in 2016 when options were exercised. Enter text answer here. Jan 2, 14 Dec 31, 14 Dec 31, 15 Dec 31, 15 Dec 31, 16 Enter text answer as appropriate. Account title Account title Amount Account Title Account Title Amount Account Title Account Title Amount Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount qattachments_e45a883db3db2aef5f382fc06a52e2a1383cf284.xlsx, Problem 16-3, Page 4 of 4, 10/14/2014, 09:25:58 Individual Project - Excel Name: ___________________________________________ Good Fair Poor Formulas Excellent Cell formulas were used whereever appropriate. There were no numbers typed in to do any calculations. Most of the numbers that needed to be calculated were done by formulas. Some of the numbers that needed to be calculated were done by formulas. None of the numbers that needed to be calculated were done by formulas. Required Data/Presentation All printouts/ data for project were handed in. All information contained in the worksheets is accurate. Most printouts/data for the project were handed in. Most of the Information contained in the worksheets was accurate. Some printouts/data for the project were handed in. Some of the Information contained in the worksheets was inaccurate. Not all printouts were handed in for the project. Most of the information in the worksheets were inaccurate. Organization The spreadsheet is very organized and very easy to read. The spreadsheet is a little difficult to read. Some of the data are scattered or cluttered. The spreadsheet appears to have some The spreadsheet is all order. It can be read over the place. The but is very difficult. data is not organized. Formatting Requirements The worksheet has all the headings,column labels, number labels, The worksheet is and is formatted missing one or two of correctly. the requirements. All directions were followed accurately Followed Directions and completely. The worksheet is missing 3 or 4 of the formatting requirements. Most of the directions Some of the were followed directions were accurately. followed. The worksheet is missing all of the formatting requirements. None of the directions were followed. Totals