Question6

A:

Bonita Industries acquired 19000 shares of its own common stock at $22 per share on February 5, 2020, and sold 9500 of these shares at $29 per share on August 9, 2021. The fair value of Bonita's common stock was $26 per share at December 31, 2020, and $27 per share at December 31, 2021. The cost method is used to record treasury stock transactions. What account(s) should Bonita credit in 2021 to record the sale of 9500 shares?

Treasury Stock for $209000 and Retained Earnings for $66500.

Treasury Stock for $209000 and Paid-in Capital from Treasury Stock for $66500.

Treasury Stock for $247000 and Retained Earnings for $28500.

Treasury Stock for $275500.

B:

Sunland Company, has 4170000 shares of common stock outstanding on December 31, 2020. An additional 803000 shares of common stock were issued on April 1, 2021, and 393000 more on July 1, 2021. On October 1, 2021, Sunland issued 19800, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?

5367750 and 6167750

4968750 and 5067750

4968750 and 4968750

4968750 and 5367750