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.................................... 400,000

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

Bonds Payable .................................................................... 9,600,000
Share Premium—Share Warrants ....................................... 200,000

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 $17,500

Expenses:
Other than interest ............................................................... $8,400
Bond interest (75 X $950 X .10) ........................................... 7,125 15,525
Income before income taxes.......................................................... 1,975
Income taxes (40%) ............................................................. 790
Net income .................................................................................... $ 1,185

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

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