NAMA : ALISYA UMARI

NIM : 041911333188
TUGAS AKM II PERTEMUAN 11

E 16-4 Issuance, Conversion, Repurchase of Convertible Bonds

(a) Cash ......................................................................................60,000

Bonds Payable......................................................................... 53,993
Share Premium—ConversionEquity......................................... 6,007

(b) Interest Expense......................................................................4,265

Bonds Payable............................................................................735
Cash......................................................................................... 5,000

(c) Share Premium—Conversion Equity........................................6,007

Bonds Payable.......................................................................51,783
Share Capital Ordinary(6,000X$1)............................................ 6,000
Share Premium Ordinary.......................................................... 51,790

(d) Computation of gain or loss:

Present value of liability component
   at 12/31/13............................................................................. $54,000
Less: Carrying value (from above)...........................................   51,783
Loss.......................................................................................... $ 2,217

Adjustment to equity:
Fair value of convertible bonds
   (with both liability and equity)................................................. $55,500
Less: Liability component........................................................   54,000
Adjustment to Share Premium—Conversion
   Equity.................................................................................... $ 1,500

Share Premium—Conversion Equity........................................................... 1,500

Bonds Payable............................................................................................ 51,783
Loss on Repurchase................................................................................... 2,217
Cash......................................................................................... 55,500
(e) Interest Expense......................................................................4,074
Bonds Payable............................................................................926
Cash......................................................................................... 5,000

Bonds Payable.......................................................................50,000
Cash......................................................................................... 50,000

E 16-8 Issuance of Bonds with Share Warrants

1. Cash (€10,000,000 X .99)............................................................. 9,900,000

Bonds Payable (10,000,000X.95)..................... 9,500,000
Share Premium—Conversion Equity....................................

2. Cash (€10,000,000 X .98)............................................................. 9,800,000

Bonds Payable.................................................... 9,600,000
Share Premium—Share Warrants........................................

3. Share Premium—Conversion Equity............................................. 200,000

Conversion Expense..................................................................... 75,000
Bonds Payable.............................................................................. 9,700,000
Share Capital - Ordinary..................................... 1,000,000
SharePremium- Ordinary.................................. 8,900,000
Cash............................................................... 75,000

E 16-11 Issuance and Exercise of Share Options

1/2/10
No entry (total compensation cost is $600,000)

12/31/10
CompensationExpense......................................................................300,000
Share Premium Share Options....................................................................... 300,000
(1/2 X $600,000)

12/31/11
Compensation Expense.....................................................................300,000
SharePremiumShareOptions.......................................................................... 300,000
(1/2 X $600,000)
1/3/12
Cash (30,000 X $40) ......................................................................1,200,000
Share Premium—Share Options
($600,000 X 30,000/40,000)...............................................................450,000
Share Capital—Ordinary
(30,000 X $10) ...................................................................................... 300,000
Share Premium Ordinary................................................................................ 1,350,000

5/1/12
Cash (10,000 X $40) .........................................................................400,000
Share Premium—Share Options
($600,000 X 10,000/40,000)..............................................................150,000
Share Capital Ordinary................................................................................... 100,000
Share Premium Ordinary................................................................................ 450,000

E 16-17 EPS: Simple Capital Structure

(a)

Dates Shares Fraction Weighted

Event Outstanding Outstanding Restatement of Year Shares
Beginning balance Jan. 1–Feb. 1 480,000 1.2 X 3.0 1/12 144,000
Issued shares Feb. 1–Mar. 1 600,000 1.2 X 3.0 1/12 180,000
Share dividend Mar. 1–May 1 720,000 3.0 2/12 360,000
Reacquired shares May 1–June 1 620,000 3.0 1/12 155,000
Share split June 1–Oct. 1 1,860,000 4/12 620,000
Reissued shares Oct. 1–Dec. 31 1,920,000 3/12 480,000
Weighted-average number of shares outstanding 1,939,000

¥3,256,000,000 (Net Income)

(b) Earnings Per Share = = ¥1,679.22
1,939,000 (Weighted-Average Shares)

¥3,256,000,000 – ¥900,000
(c) Earnings Per Share = = ¥1,678.75
1,939,000

(d)

¥3,688,000,000 = ¥1,902.01
 1,939,000

¥ (432,000,000)
= ¥ 222.80
1,939,000

Income from continuing operationsa..................................................................... ¥ 1,902.01

Loss from discontinued operationsb........................................................... (222.80
Net income................................................................................................. ¥ 1,679.21

Net income.......................................................................................................... ¥3,256,000,000

Add loss from discontinued operations................................................................ 432,000,000
Income from continuing operations......................................................................¥3,688,000,000

E 16-23 EPS with Convertible Bonds

(a) Revenues
Expenses:
Other than interest................................................................ $8,400
Bond interest (75 X $950 X .10)............................................ 7,125
Income before income taxes...........................................................
Income taxes (40%)..............................................................
Net income.....................................................................................

Diluted earnings per share:

$1,185 + (1 – .40)($7,125) $5,460

= =$.57
2,000 + 7,500 9,500

(b) Revenues .................................................................................... $17,500

Expenses :
Other than interest .................................................................... $8,400
Bond interest ............................................................................ 2,375 10,775
Income before income taxes.................................................................... 6,725
Incometaxes(40%)................................................................................... 2,690
Net income .................................................................................... $ 4,035

Diluted earnings per share:

$4,035 + (1 – .40)($2,375) $5,460

 2,000 + (7,500 X 1/3 yr.) 4,500
= =$1.21

(c)
Revenues .................................................................................... $17,500
Expenses:
Otherthaninterest ....................................................................................$8,400
Bond Interest(75X$950X.10X1/2).............................................................3,563
Bond interest (50 X $950 X .10 X 1/2)...................................................... 2,375 14,338
Income before income taxes.................................................................... 3,162
Incometaxes(40%)................................................................................... 1,265
Net income .................................................................................... $ 1,897

Diluted earnings per share (see note):

$1,897 + (1 – .40)($5,938) $5,460

= =$.57
2,000 + (2,500 X 1/2 yr.) + 5,000 + (2,500 X 1/2) 9,500