Problem 2 (15 Points) GK Chesterton Co. issued 55,000,000 of 75%, 5-year convertible bonds on December 1, 2019 for $5,025,480 plus accrued interest of $62,500 (credited to interest payable). The bonds were dated April 1, 2019 with interest payable on April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Each $1,000 bond is convertible into 14 shares of $15 par value common stock. On October 1, 2020, bonds with a face value of $2,500,000 were converted into common stock, stock. Instructions: (a) Prepare the entry to record the interest payment on April 1, 2020. Assume that interest payable was credited when the bonds were issued (round to nearest dollar). Hint: You will need to amortize the premium over 52 months since the bonds were issued after the date of April 1, 2019 (b) Prepare the entry to record the entries on October 1, 2020 Problem3 (20 points) A. Epple, Incorporated. had 50,000 common shares outstanding on January 1, 2020. The company sold an additional 5,000 shares on March 1, issued a 4-for-1 stock split on September 1, reacquired 4,000 common shares for treasury on October 1 and re-issued 2,000 Treasury shares on December 1. The company also declared, but has not paid, a dividend on its 10,000 shares of 5%, 550 par, noncumulative preferred stock. Epple had a net income of $184,100. This consists of income from continuing operations of $213,000, and a loss from discontinued operations (net of taxes) of 528,900. Instructions: 1. Prepare a schedule to determine the weighted average of common stock outstanding for Epple, Incorporated. 2. Compute Epple, incorporated earnings per share for 2020 and show 2020 income statement disclosure of earnings per share. You must show supporting computations to receive credit. Problem 4 (15 Points) During 2020, Masefield, Inc. had the following convertible securities outstanding: $200,000 of 6% convertible bonds. Each $1,000 bond is convertible into 30 shares of common stock. $100,000 of 10%, $SO par, cumulative preferred stock. Each share is convertible into 4 shares of common stock. Masefield, Inc. has an income tax rate of 30%. Its reported net income for 2020 was $210,000, and it had 26,000 shares of common stock outstanding all year. Instructions: Calculate basic and diluted earnings per share for Masefield. You may omit ranking and impact of the dilutive securities. You must show computations to receive credit