1. Problem - Know how to calculate earnings per share on common stock.
2. Problem - On an interest payment date, a company has bonds that were converted into shares of the company's common stock, each having a certain par value and a market value. There is an unamortized discount on the bonds. Using the book value method, the company would record what increase in paid-in capital in excess of par?
3. Problem -Company A issued bonds due in ten years. One detachable stock warrant entitling the holder to purchase shares of Company B's common stock was attached to each bond. At the date of issuance, the market value of the bonds, without the stock warrants, was quoted at a certain amount. The market value of each detachable warrant was quoted at a certain amount. What amount should record as paid-in capital from stock warrants?
4. Problem -A company granted stock options to officers and key employees for the purchase shares of the company's par common stock at a certain amount per share as additional compensation for services to be rendered over the next three years. The market price of common stock was a certain amount per share at the date of grant. The options are exercisable during a five-year period by grantees still employed by Morgan. The Black-Scholes option pricing model determines total compensation expense to be a certain amount. The journal entry to record the compensation expense related to these options for would include a credit to the Paid-in Capital - Stock Options account for what amount?