Problem #$11$: EPS, Weighted Average Shares Calculations

The Cola Production Company showed the following share activity for the year ended $2018$

Required: Compute the weighted average number of shares outstanding at the end of the year

Problems $12-15$ are based on Bonds purchased as Investment from the perspective of the Buyer Problem # $12$

Cumberland Company purchased $$200,000$ of $8$ percent bonds of ValueBite Corporation on January $1,2011,$ at a

discount, paying $$184,556.$ The bonds mature January $1,2016$ and yield $10\%$ interest payable each July $1$ and

Januarv$1$st$.$ Record the Journal entry on Cumberland's books for purchase of the bonds:

Problem #$13$

Record the receipt by Cumberland of the first semi$-$annual interest payment $($note: you must calculate the amount

of the bond discount amortization pertaining to the first semi$-$annual payment$)$

Problem #$14$

Assume that Cumberland Company sells its investment in YalyeRite bonds on November $1,2015,$ at $99\%$ plus

accrued interest. Record the journal entry for the discount amortization $(4$ months$).$ Use the accompanying

amortization table $($on last page$)$ to assist in your analysis and calculations.

Problem #$15$

Assume the same facts as in #$4($above$).$ Record the journal entry for the sale of the bonds:

Problem #$16$: Basic and Diluted EPS Calculations $($involving multiple securities$)$:

Assume that the following data relative to Kitana Company for $2013$ is available regarding outstanding securities at

year end:

$1]$ $$1,000,0008\%$ Cumulative Convertible Preferred Stock

Sold at par, convertible into $200,000$ shares of common

$2]90,000$ Stock Options

exercisable at the option price of $$25$ per share. Average

market price per share in $2013$ is $$30$

Additional Information:

The Weighted average number of shares at end of $2013$ is $1,330,000$ and net income for $2013$ is $$2,100,000$

Instructions

$($a$)$ Compute the basic earnings per share for $2013.$

$($b$)$ Compute the diluted earnings per share for $2013.$