Current

P13-1Liability Entries and Adjustment

a. Journal
No Tanggal Keterangan Dr Cr
Purchase 70.000
1 2/10, n/30 Feb 2 (Paid Feb 26)
2-Feb Purchase (70000-2%) £ 68,600
Account Payable £ 68,600
26-Feb Account Payable £ 68,600
Purchase Discount Lost £ 1,400
Cash £ 70,000

April 1, trucks 50000,

2 pay 4000 cash, signing one year 12% note
1-Apr Trucks £ 50,000
Cash £ 4,000
Notes Payable £ 46,000

August 1 300000 cash

3 devidend payable on sept 10 to share holders
1-Aug Retained Earnings £ 300,000
Devidends Payable £ 300,000
10-Sep Devidends Payable £ 300,000
Cash £ 300,000

b Journal Year-end
1 No adjusment necessary
2 Interest Expense (46000x12%x9/12) 4140
Interesr Payable 4140
3 No adjusment necessary
 P13-2 Liability Entries and Adjustment

Jounal 1
No Keterangan Dr Cr
1 Dec 5 received 500 from the jackson as deposit returned Jan 15
Cash £ 500
Returned Deposit (Liability) £ 500

2 During december. Sales totaled 798000 Inc 5% Vat

Cash £ 798,000
Sales (798000/1,05) £ 760,000
Sales Tax Payable (760000x0,5) £ 380,000

3 Dec 10, purchase truck 120000. 5% Vat

Trucks (120000x1,05) £ 126,000
Cash £ 126,000

4 100.000 to restore area when store closed in 2 years, estimated fair

value Dec 31 84.000
Parking Lot £ 84,000
Environmental Liability £ 84,000
P14-2
a Present value of the principal
2000000x0,38554 $ 771,080.00
Present value of the interest payments
(2000000x10,5%)x6,14457 $ 1,290,359.70

Present Value $ 2,061,439.70

b Interest Premium Carrying Amount of

Date Cash Paid Expense Amortization Bonds
1-Jan-14 $ 2,061,439.70
1-Jan-15 $ 210,000.00 $ 206,143.97 $ 3,856.03 $ 2,057,583.67
1-Jan-16 $ 210,000.00 $ 205,758.37 $ 4,241.63 $ 2,053,342.04
1-Jan-17 $ 210,000.00 $ 205,334.20 $ 4,665.80 $ 2,048,676.24
1-Jan-18 $ 210,000.00 $ 204,867.62 $ 5,132.38 $ 2,043,543.86

C Prepare necessary adjusting entries

Carrying amount as of 1/1/17 $ 2,048,676.24
Less: Amortization of bond premium (5132,38/2) $ 2,566.19
$ 2,046,110.05

Reacquisition Price $ 1,065,000.00

Carrying amount as 7/1/2017 $ 1,023,055.03
Loss $ 41,944.97

Entry of accrued interest

Interest Expens (204867,62x1/2x1/2) $ 51,216.91
Bonds Payable $ 1,283.09
Cash (210000x1/2x1/2) $ 52,500.00

Entry For Reacquistion

Bonds Payable $ 1,023,055.03
Loss on extinguishment $ 41,944.97
Cash $ 1,065,000.00
P14-12
A. Note Payable $ 5,000,000.00
Share Capital - Ordinary $ 1,700,000.00
Share Premium - Ordinary $ 2,000,000.00
Gain on Extinguishment of Debt $ 1,300,000.00

Carrying amount of devt $ 5,000,000.00

Fair value of equity $ -3,700,000.00
Gain on Extinguishment of debt $ 1,300,000.00

B. Note Payable $ 5,000,000.00

Land $ 3,250,000.00
Gain on Disposition of Real Estate $ 750,000.00
Gain on Extinguishment of Debt $ 1,000,000.00

Fair value of land $ 4,000,000.00

Book value of land $ -3,250,000.00
Gain on disposition of real estatte $ 750,000.00

Note Payable (carrying amount) $ 5,000,000.00

Fair value of land $ -4,000,000.00
Gain on extinguishment of debt $ 1,000,000.00

C. Note Payable (old) $ 5,000,000.00

Gain on Extinguishment of debt $ 1,712,400.00 *
Note Payable (new) $ 3,287,600.00

*Calculation of Gain

Pre-restructure carrying amouny $ 5,000,000.00

Less: Present Value of Restructured cash flows:
Present Value of $ 5.000.000 due in
3 years at 12% ($5.000.000 x 0,65752) $ 3,287,600.00
Debtor's Gain on Extinguishment $ 1,712,400.00
P16-7

a. Basic EPS
£ 1,200,000 - £ 4,000,000 x 0.06 : € 600,000
£ 960,000 : € 600,000
1.6

b. Diluted EPS
((𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 −𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑒𝑣𝑖𝑑𝑒𝑛𝑑𝑠+𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑆𝑎𝑣𝑖𝑛𝑔 (𝑛𝑒𝑡 𝑜𝑓 𝑡𝑎𝑥))/
(𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒+𝑃𝑜𝑡𝑒𝑛𝑡𝑖𝑎𝑙𝑙𝑦 𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒)
£ 1,200,000 - £ 240,000 a,b
£ 600,000 + £ 15,000 c
£ 960,000 = 1.56 pershare
£ 615,000

b. Obligasi convertible tid

a. Saham preferen tidak diasumsikan untuk dikonversi sejak konversi akan akan antidilutive. Yaitu,
antidilutive. Yaitu, konversi dari saham preferen meningkatkan pembilang £972.000 (£1.800.000
£240.000 (£4.000.000 X .06) dan 120.000 saham [(4.000.000 ÷ 100) X 3] [(£2.000.00

c. (𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 −𝑂𝑝𝑡𝑖𝑜𝑛 𝑃𝑟𝑖𝑐𝑒)/(𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒)xNumber

Option = Incremental Share
£ 25 - £ 20 x £ 75,000 = £ 15,000
£ 25
b. Obligasi convertible tidak diasumsikan untuk dikonversi sejak konversi
akan antidilutive. Yaitu, konversi dari ikatan meningkatkan pembilang
£972.000 (£1.800.000 X. 90x. 60) dan denominator 60.000 saham
[(£2.000.000 ÷ £1.000) X 30 saham/obligasi]