QUESTION 4 On January 1, 2021, Horsebarn, Inc had 375,000 shares of its $2 par value common stock outstanding. On March 1, Horsebarn sold an additional 750,000 shares on the open market at $20 per share. Horsebarn issued a 2096 stock dividend on May 1. On August 1, Horsebarn purchased 420,000 shares as treasury stock. What is the weighted average number of shares outstanding for 2021? 870000 QUESTION 5 Dilutive convertible securities must be used in the computation of basic earnings per share only. diluted earnings per share only. diluted and basic earnings per share. none of these. QUESTION 6 Avocado Corp.'s 2020 net income was $1,800,000 and the income tax rate was 309. On January 1, 2020, Avocado Corp. issued at par $2,000,000 of 1096 convertible bonds. Each $1,000 bond is convertible into 10 shares of common stock. No bonds were converted during 2020. The company had 200,000 shares of common stock outstanding during 2020. Calculate the diluted earnings per share for 2020 (rounded to the nearest penny): $9.70. $8.82. $9.10. $9.00. QUESTION 12 Based on the following information how is the lease classified for the lessee? 10 Lease Terms (years) Useful Life (years) Present value of Lease Payments Fair Value of leased asset Residual Value (unguaranteed) Bargain Purchase Option Ownership Transfer at end of lease 24,500 26,000 4,000 No No Operating Sales-type lease Investing Lease Finance lease QUESTION 13 On January 1, 2021, Spider Corporation leased a ship from Web Company for an 8-year period expiring January 1, 2029. Equal annual payments of $500,000 are due on January 1 of each year, beginning on January 1, 2021. The lease is properly classified as a finance lease on Spider's books. The present value at January 1, 2021 of the 8 lease payments over the lease term discounted at 1096 is $2,934,213. Write the journal entry that will be recorded on January 1, 2021. Be sure to write the Dr. and Cr. before each line of the journal entry. TT T Arial 3 (12pt) - T-5 - E - S s QUESTION 4 On January 1, 2021, Horsebarn, Inc had 375,000 shares of its $2 par value common stock outstanding. On March 1, Horsebarn sold an additional 750,000 shares on the open market at $20 per share. Horsebarn issued a 2096 stock dividend on May 1. On August 1, Horsebarn purchased 420,000 shares as treasury stock. What is the weighted average number of shares outstanding for 2021? 870000 QUESTION 5 Dilutive convertible securities must be used in the computation of basic earnings per share only. diluted earnings per share only. diluted and basic earnings per share. none of these. QUESTION 6 Avocado Corp.'s 2020 net income was $1,800,000 and the income tax rate was 309. On January 1, 2020, Avocado Corp. issued at par $2,000,000 of 1096 convertible bonds. Each $1,000 bond is convertible into 10 shares of common stock. No bonds were converted during 2020. The company had 200,000 shares of common stock outstanding during 2020. Calculate the diluted earnings per share for 2020 (rounded to the nearest penny): $9.70. $8.82. $9.10. $9.00. QUESTION 12 Based on the following information how is the lease classified for the lessee? 10 Lease Terms (years) Useful Life (years) Present value of Lease Payments Fair Value of leased asset Residual Value (unguaranteed) Bargain Purchase Option Ownership Transfer at end of lease 24,500 26,000 4,000 No No Operating Sales-type lease Investing Lease Finance lease QUESTION 13 On January 1, 2021, Spider Corporation leased a ship from Web Company for an 8-year period expiring January 1, 2029. Equal annual payments of $500,000 are due on January 1 of each year, beginning on January 1, 2021. The lease is properly classified as a finance lease on Spider's books. The present value at January 1, 2021 of the 8 lease payments over the lease term discounted at 1096 is $2,934,213. Write the journal entry that will be recorded on January 1, 2021. Be sure to write the Dr. and Cr. before each line of the journal entry. TT T Arial 3 (12pt) - T-5 - E - S s
