Question 1 2 pts Pistol Corp. Issued $18 million of 7%, 15-year convertible bonds at 104 on January 1, 2021. The bonds pay interest semiannually each June 30 and December 31. Each $1,000 bond is convertible Into 20 shares of Pistol's no par common stock. Pistol recently Issued similar, but non-convertible, bonds at 99. What amount of premium or discount should Pistol record at issuance of the convertible bonds? Enter in dollars (es. enter $10 million as 10,000,000). Enter a PREMIUM as a POSITIVE number and a DISCOUNT as a NEGATIVE number. Question 2 2 pts Pete Corp. issued $30 million of 7%, 15-year convertible bonds at 102 on January 1, 2021. The bonds pay interest semiannually each June 30 and December 31. Each $1,000 bond is convertible into 50 shares of Pete's no par common stock. Pete recently issued similar, but non-convertible, bonds at 98. 46% of the bonds were converted when the common stock had a price of $23/share and the remaining premium was $0.2 million ($200,000). For what amount would Pete credit Common Stock when 46% of the bonds are converted? Enter in dollars (e.g. enter $10 million as 10,000,000). 30 Question 3 2 pts On March 1, 2021, Bullet Company issued $20 million of 10% bonds at 103, due on February 28, 2031. Each $1,000 hond was issued with 24 detachable stock warrants, each of which entitled the holder to purchase, for $50, one share of Bullet's no par common stock. On March 1, 2021, the market price of each warrant was $11. By what amount should the bond issue proceeds increase shareholders' equity? Enter in dollars (e.g. enter $10 million as 10,000,000). 264.000 Question 4 2 pts On June 1, 2021. Cowboy Company issued $6 million of 8% bonds at 102, due on May 31, 2026. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $52, one share of Cowboy's no par common stock. On the date of issuance, the market price of each warrant was $8. In October 2024,34% of the stock warrants were exercised when the common stock had a market price of $77 per share. For what amount would Cowboy Company credit Common Stock when the warrants are exercised? Enter in dollars (e.g. enter $10 million as 10,000,000). 2.04 Question 5 2 pts During 2021, Pokes, Inc. issued bonds at 101 and elected to report them at fair value. On December 31, 2021, the fair value of the bonds was $450,000 while the carrying value (face amount plus remaining premium) was $490,000. Pokes determined that $30,000 of the decrease in fair value was due to increases in general interest rates. What amount of unrealized holding gain should Pokes report in its 2021 Net Income? 10,000 Question 1 2 pts Pistol Corp. Issued $18 million of 7%, 15-year convertible bonds at 104 on January 1, 2021. The bonds pay interest semiannually each June 30 and December 31. Each $1,000 bond is convertible Into 20 shares of Pistol's no par common stock. Pistol recently Issued similar, but non-convertible, bonds at 99. What amount of premium or discount should Pistol record at issuance of the convertible bonds? Enter in dollars (es. enter $10 million as 10,000,000). Enter a PREMIUM as a POSITIVE number and a DISCOUNT as a NEGATIVE number. Question 2 2 pts Pete Corp. issued $30 million of 7%, 15-year convertible bonds at 102 on January 1, 2021. The bonds pay interest semiannually each June 30 and December 31. Each $1,000 bond is convertible into 50 shares of Pete's no par common stock. Pete recently issued similar, but non-convertible, bonds at 98. 46% of the bonds were converted when the common stock had a price of $23/share and the remaining premium was $0.2 million ($200,000). For what amount would Pete credit Common Stock when 46% of the bonds are converted? Enter in dollars (e.g. enter $10 million as 10,000,000). 30 Question 3 2 pts On March 1, 2021, Bullet Company issued $20 million of 10% bonds at 103, due on February 28, 2031. Each $1,000 hond was issued with 24 detachable stock warrants, each of which entitled the holder to purchase, for $50, one share of Bullet's no par common stock. On March 1, 2021, the market price of each warrant was $11. By what amount should the bond issue proceeds increase shareholders' equity? Enter in dollars (e.g. enter $10 million as 10,000,000). 264.000 Question 4 2 pts On June 1, 2021. Cowboy Company issued $6 million of 8% bonds at 102, due on May 31, 2026. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $52, one share of Cowboy's no par common stock. On the date of issuance, the market price of each warrant was $8. In October 2024,34% of the stock warrants were exercised when the common stock had a market price of $77 per share. For what amount would Cowboy Company credit Common Stock when the warrants are exercised? Enter in dollars (e.g. enter $10 million as 10,000,000). 2.04 Question 5 2 pts During 2021, Pokes, Inc. issued bonds at 101 and elected to report them at fair value. On December 31, 2021, the fair value of the bonds was $450,000 while the carrying value (face amount plus remaining premium) was $490,000. Pokes determined that $30,000 of the decrease in fair value was due to increases in general interest rates. What amount of unrealized holding gain should Pokes report in its 2021 Net Income? 10,000