EXam-Version Problem 2 -(14 points) B Greene Co. has 2,000,000 shares of Sl par

Question

EXam-Version Problem 2 -(14 points) B Greene Co. has 2,000,000 shares of Sl par common stock outstanding on Deceno16, originally sold for $5 per share. Greene had the following transactions 5 that during 201 . On January 1, 2016, Greene issued 500,000 new shares of common st .On April 1, 2016, Greene purchased and retired 120,000 shares at $20 . on October 1, 2016, Keene issued $3,000,000 of9% convertible bonds at par. ock The bonds bonds have been are convertible into 360,000 shares of common stock. As of 12/31/16, no converted a) (8 points) What journal entry does Greene record on April 1, 20167 (6 points) What is the weighted average number of shares used to calculate diluted EPS for 2016? b)

Explanation / Answer

WANES for 2016 = [2500000*3/12]+[2380000*6/12]+[2740000*3/12]

= 2500000 shares

Date Particulars Debit Credit 01-04-2016 Treasury Stock $       24,00,000         Cash $       24,00,000 01-04-2016 $1 par common stock $          1,20,000 Additional Paid-in Capital $          4,80,000 Retained Earnings $       18,00,000          Treasury Stock $       24,00,000

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