1. On Dec 31 2017, ABC Co. has outstanding $500,000 face amount, 9%, 20-year convertible bonds that pay interest semiannually. After semiannual amortization on Dec. 31, 2017, the remaining bond premium is $8,000. On the first day of the next fiscal year (January 1, 2018), 50% (half) of the bonds are converted to 750 shares of $50 par value common stock. The market value of the shares issued is $250,000. Prepare the necessary journal entry to record the conversion of the bonds.
2. On January 1, 2016 Vera Co. had 100,000 shares of $5 par common stock outstanding. The following transactions took place during 2016. Vera declared and issued a 20% stock dividend on March 15. On July 1, Vera purchased 10,000 shares of its common stock. On October 1, Vera issued 14,000 shares for cash.
a) What is the total number of shares outstanding as of Dec. 31?
b) What is the weighted-average number of shares outstanding as of Dec. 31?
c) On Dec 31 2016 Vera Co had a Net Income of $350,000 and declared preferred dividends of $85,000. Calculate the Earnings Per share for 2016