. Question 1 (8 points) Stanton Corporation had net income of $490,000 for year ended December 31, 2020 with 210.000 common shares outstanding for the entire year. The tax rate for 2020 was 35%. The following additional information was obtained from Stanton's records: Stanton has 10,000 preferred shares outstanding that are $3 cumulative shares, convertible to common shares at a ratio of 1 preferred share to 2 common shares. No conversions took place during the year, and all shares were outstanding for the full year. Stanton has three bonds that were outstanding for the entire year: 1. $800,000, 6% 10 year bonds that are convertible to 40,000 common shares 2. $1,000,000, 8%, 20 year bonds that are convertible to 20,000 common shares. 3. $500,000, 4%, 15 year bonds that are convertible to 30,000 common shares Options were written December 2019, to purchase 4,000 common shares at $5 per share. The average market price of Stanton's common shares during 2020 was $8 per share. The options expire in 2029, and none were exercised during 2020 REQUIRED: a Calculate the basic EPS for 2020. b Calculate the diluted EPS for 2020, insert table is desired. Question 4 (3 points) Saved Sport Pro Magazine sold 12.000 annual subscriptions on August 1, 2020. for $18 each. Prepare Sport Pro's August 1, 2020 journal entry and the December 31, 2020 annual adjusting entry, assuming the magazines are published and delivered monthly. Format BIU - Debit Credit Date Account Titles Question 5 (1 point) . Question 1 (8 points) Stanton Corporation had net income of $490,000 for year ended December 31, 2020 with 210.000 common shares outstanding for the entire year. The tax rate for 2020 was 35%. The following additional information was obtained from Stanton's records: Stanton has 10,000 preferred shares outstanding that are $3 cumulative shares, convertible to common shares at a ratio of 1 preferred share to 2 common shares. No conversions took place during the year, and all shares were outstanding for the full year. Stanton has three bonds that were outstanding for the entire year: 1. $800,000, 6% 10 year bonds that are convertible to 40,000 common shares 2. $1,000,000, 8%, 20 year bonds that are convertible to 20,000 common shares. 3. $500,000, 4%, 15 year bonds that are convertible to 30,000 common shares Options were written December 2019, to purchase 4,000 common shares at $5 per share. The average market price of Stanton's common shares during 2020 was $8 per share. The options expire in 2029, and none were exercised during 2020 REQUIRED: a Calculate the basic EPS for 2020. b Calculate the diluted EPS for 2020, insert table is desired. Question 4 (3 points) Saved Sport Pro Magazine sold 12.000 annual subscriptions on August 1, 2020. for $18 each. Prepare Sport Pro's August 1, 2020 journal entry and the December 31, 2020 annual adjusting entry, assuming the magazines are published and delivered monthly. Format BIU - Debit Credit Date Account Titles Question 5 (1 point)
