Record the journal entry to convert the Bonds into Common Stock using the Book Value Method. On August 1, 2019, Lane Corporation called its 10% convertible bonds for conversion. The $8,000,000 par bonds were converted into 310,000 shares of $20 par common stock. On August 1, there was $600,000 of unamortized premium applicable to the bonds. The fair market value of the common stet was $20 per share. Ignore al interest payments. Record the journal entry to convert the bonds into common stock. Bonds Premium 21 22 23 24 Common Stock @ par APIC Problem V: Dilutive EPS with Convertible bonds Net Income is $310,000. Preferred Stock Dividends are $1,600. Weighted Average number of common shares outstanding is 50,000. The convertible Bonds have an annual interest rate of 5%. Taxes are 30% of the interest. The Bonds can be converted into 15,000 shares of common stock Bonds are $100,000 25 What is the dilutive EPS? 0 1 2 33 34 35 BG Problem X: Basic and diluted EPS (Stock Options) $ 430,000 200,000 Shares 88 89 90 1. NO ome 2. S10 par common stock, 200,000 issued and outstanding 3. Stock options to buy 17,000 shares of Common stock at $20 per share 4. Average market price per share of common stock $22 per share Market price 192 Compute the basic and diluted EPS 193 194 195 196 26 a. Basic EPS 199 201 202 203 27 b. Dilutive EPS 204 205 206 207