Reference no: EM131632257

Q1. Eisler Corporation issued 2,370 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 97, and the warrants had a market price of $42.

Use the proportional method to record the issuance of the bonds and warrants.

Q2. On January 1, 2014, Lennon Industries had stock outstanding as follows.

6% Cumulative preferred stock, $116 par value,   issued and outstanding 11,800 shares	$1,368,800
Common stock, $11 par value, issued and   outstanding 285,600 shares	3,141,600

To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 253,200 common shares. The acquisitions took place as shown below.

Date of Acquisition	Shares Issued
Company A April 1, 2014	104,400
Company B July 1, 2014	123,600
Company C October 1, 2014	25,200

On May 14, 2014, Lennon realized a $148,800 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.

On December 31, 2014, Lennon recorded net income of $379,200 before tax and exclusive of the gain.

Assuming a 47% tax rate, compute the earnings per share data that should appear on the financial statements of Lennon Industries as of December 31, 2014. Assume that the expropriation is extraordinary.