On January 1, 2012, Barwood Corporation granted 5,470 options to executives. Each option entitles the holder to purchase one share of Barwood's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $66 per share on the date of grant. The fair value of the options at the grant date is $164,800. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2012, and December 31, 2012 and 2013. (If no entry is required, enter No Entry as the description and 0 as the amount.)
Date Description/Account Debit Credit
Rockland Corporation earned net income of $419,700 in 2012 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $1,119,200 of 10% bonds, which are convertible into 22,384 shares of common. Rockland's tax rate is 40 percent. Compute Rockland's 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.13.)
DiCenta Corporation reported net income of $282,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 6,910 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta' tax rate is 40%. Compute DiCenta' 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 5.23.)
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Myco basic diluted EPS convertible bonds preferred options
At January1,2013 Myco Corporation had outstanding the following securities:
$1,000,000, 5% cumulative convertible preferred shares,$50 par; each share is convertible into 2 shares of common stock.
7% convertible bonds, $2,000,000 face value issued at par ($1,000) per bond. Each bond is convertible into 30 shares of common stock
$6,000,000 common stock, $10 par value
a. On April 1, 2013, Myco purchased 100,000 shares of its common stock as treasury stock.
b. June 30, 2013, Myco issued a 4%stock dividend
c. On October 31, 2013, 50,000 shares of treasury stock were sold.
d. Common stock option outstanding as of 12/31/12 and exercisable in 2013 to purchase 40,000shares at an exercise price of $30
e. The market price of the stock peaked on October 31,2013 at $50 an on December 31, 2013 the market price of the stock closed at $30,; the average market price of stock during 2013 was $40
f. Net income for the year ended December 31, 2013 was $1,500,000
g. The income tax rate for 2013 was 40%
1.Compute Myco 's basic earnings per share for the year ended December 31, 2013.
2. Compute Myco's diluted earnings per share for the year ended December 31, 2013.
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