I need help with E16-15 with regards to the attached document.

I need help with E16-15 with regards to the attached document.

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qattachments_bb851f39a6ae200a12bcf79bbe8d001558432513.xlsx, Exercise 16-1, Page 1 of 4, 11/29/2013, 22:04:38
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1. Grand Corp. issued
\$20,000,000
par value
10%
convertible bonds at
99
If the bonds had not been convertible, the company’s investment banker estimates
they would have been sold at
95
Expenses of issuing the bonds were
\$70,000
Cash
19,800,000
Discount on Bonds Payable
200,000
Bonds Payable
20,000,000
Bond Expense
70,000
Cash
70,000
2. Hoosier Company issued
\$10,000,000
par value
10%
bonds at
98
One detachable stock warrant was issued with each
\$100
par value bond. At the time
of issuance, the warrants were selling for
\$4
Cash
9,800,000
Discount on Bonds Payable
200,000
Bonds Payable
10,000,000
PIC – Stock Warrants
400,000
Value of Bonds plus Warrants
\$10,000,000
Value of Warrants
400,000
Bonds
\$9,600,000
The
11%
\$10,000,000
par value bonds were converted into
1,000,000
shares of
\$1
par value common stock on July 1, 2014. On July 1, there was
\$55,000
of unamortized discount applicable to the bonds, and the company paid an additional
\$75,000
to the bondholders to induce conversion of all the bonds. The company records the
conversion using the book value method.
Bond Conversion Expense
75,000
Bonds payable
10,000,000
Discount on Bonds Payable
55,000
Common Stock
1,000,000
APIC
8,945,000
Cash
75,000
* Calculation as desired.
Intermediate Accounting
, 15
th
Edition by Kieso, Weygandt, and Warfield
E16-1 (Issuance and Conversion of Bonds)
Instructions:
For each of the unrelated transactions described below, present the entry(ies) required to record each
transaction.
3.
Suppose Sepracor, Inc. called its convertible debt in 2014. Assume the following related to the

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qattachments_bb851f39a6ae200a12bcf79bbe8d001558432513.xlsx, Exercise 16-15, Page 2 of 4, 11/29/2013, 22:04:38
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Date:
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reporting. The company is authorized to issue
9,000,000
shares of
\$10
1. Number of common shares issued and outstanding at December 31, 2012
2,000,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2013
200,000
3. Shares issued for cash on March 31, 2014
2,000,000
Number of common shares issued and outstanding at December 31, 2014
4,200,000
4. A 2-for-1 stock split of Gogean’s common stock took place on March 31, 2015
Instructions:
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Shares outstanding
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Shares outstanding
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Intermediate Accounting
, 15
th
Edition by Kieso, Weygandt, and Warfield
E16-15 (Weighted-Average Number of Shares)
Newton Inc. uses a calendar year for financial
par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a
summary of Newton’s common stock activities.
(a)
Compute the weighted average number of common shares used in computing earnings per
common share for 2013 on the 2014 comparative income statement.
(b)
Compute the weighted average number of common shares used in computing earnings per
common share for 2014 on the 2014 comparative income statement.
(c)
Compute the weighted average number of common shares to be used in computing earnings per
common share for 2014 on the 2015 comparative income statement.
(d)
Compute the weighted average number of common shares to be used in computing earnings per
common share for 2015 on the 2015 comparative income statement.

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