Reference no: EM133167003

Question - Part A - Brac Corporation has outstanding 2,000 $1,000 bonds, each convertible in 50 shares of $10 par value common stock. The bonds are converted on December 31, 2017, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach in the journal.

Part B - Little Cayman Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share. The common stock is trading at $26 per share at the time of conversion. Record the conversion of the preferred stock in the journal.

Part C - Bodden Town Corporation had 2017 net income of $1,000,000. During 2017, Bodden Town Corporation paid a dividend of $2 per share on 100,000 shares of preferred stock. During 2017, Bodden Town Corporation had outstanding 250,000 shares of common stock. Compute Bodden Town's 2017 earnings per share.?

Part D - George Town Corporation had 120,000 shares of stock outstanding on January 1, 2017. On May 1, 2017 George Town issued 60,000 shares. On July 1, George Town purchased 10,000 treasury shares, which were reissued on October 1. Compute George Town's weighted-average number of shares outstanding for 2017.