MetLife, Inc. Is the holding corporation for the Metropolitan Life Insurance Company (MLIC), also known as Metlife, and Its affillates. MetLife is among the largest global providers of Insurance, annuities, and employee benefit programs, with 90 million customers in over 60 countries. On January, 2021, the company issued $2,000,000 of bonds. Prepare the journal entry to record the conversion of the bonds into 15,000 shares of $7 par value common stock. Assume the bonds were issued at par.

MetLife, Inc. Is the holding corporation for the Metropolitan Life Insurance Company (MLIC), also known as Metlife, and Its affillates. MetLife is among the largest global providers of Insurance, annuities, and employee benefit programs, with 90 million customers in over 60 countries. On January, 2021, the company issued $2,000,000 of bonds. Prepare the journal entry to record the conversion of the bonds into 15,000 shares of $7 par value common stock. Assume the bonds were issued at par.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 11QE

See similar textbooks

Similar questions

Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Ordinary Share Capital, P2 par value, 1,000,000 shares authorized, 177,580…
The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Ordinary Share Capital, P2 par value, 1,000,000 shares authorized, 177,580…
The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the figure]. The following transactions occurred during 2022. January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds due February 1, 2032 at 103 with one detachable share warrant to each bond. Interest is payable annually February 1. The fair market value of the bonds without the share warrants is 95. The warrants have a fair value of P50 each and will expire on February 1, 2023. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 - 2,800 ordinary shares were subscribed at P44 each. 40% of the subscription was collected. March 20 - The balance due on 2,400 shares was received and those shares were issued. November 1 - There were 110 share warrants detached from the bonds and exercised. The company's net income for 2022 is P950,000 Compute the ending balance of the Ordinary Share Capital account. Compute the…
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $40 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading securities portfolio. The company’s fiscal year ends on December 31. 2021 Oct. 18 Purchased 2 million shares of Millwork Ventures Company common stock for $58 million. Millwork has a total of 34 million shares issued. 31 Received semiannual interest of $1.6 million from the Kansas Abstractors bonds. Nov. 1 Sold the Kansas Abstractors bonds for $36 million because rising interest rates are expected to cause their fair…
Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $56 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2021 at face value and held in Amalgamated’s trading securities portfolio. The company’s fiscal year ends on December 31. 2021 Oct. 18 Purchased 2 million shares of Millwork Ventures Company common stock for $77 million. Millwork has a total of 56 million shares issued. 31 Received semiannual interest of $2.8 million from the Kansas Abstractors bonds. Nov. 1 Purchased 10% bonds of Holistic Entertainment Enterprises at their $18 million face value, to be held until they mature in 2031. Semiannual interest is…
Indigo Inc., was organized on January 1, 2017, at which date it issued 200,000 shares of P 10 par Ordinary share capital at P 15 per share. For the period 2017 to 2019, the corporation reported profit of P900,000 and paid cash dividends of P 460,000. On Jan. 1, 2019, the corporation purchased 12,000 of its own share capital at P 12 per share. On Sept. 20, 2019, the company sold 8,000 Treasury shares at P 18 per share. On Oct. 2, 2019, the corporation received 2,000 shares as donation from a major shareholder and were subsequently sold at P 15 per share on Nov. 15, 2019. Compute Total Shareholders’ Equity on December 31, 2019
The following is a summary of all relevant transactions of Vicario Corporation since it was organized in 2020. In 2020, 15,000 shares were authorized and 7,000 shares of common stock ($50 par value) were issued at a price of $57. In 2021, 1,000 shares were bought in 2022 at a cost of $64 per share. these 300 shares are still in the company treasury. In 2021, 10,000 preferred shares were authorized and the company issued 5,000 of them ($100 par value) at $113. Some of the preferred stock was reacquired by the company and later reissued for $4,700 more than it cost the company. The corporation has earned a total of $610,000 in net income taxes and paid out a total of $312,600 in cash dividends since incorporation. Instructions: Prepare the stockholders' equity of the balance sheet in proper form for Vicario Corporation as of December 31, 2022. Account for treasury stock using the cost method.
During 2021, its first year of operations, McCollum Tool Works entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100 million common shares, $1 par per share. Jan. 2 Issued 65 million common shares for cash. 3 Entered an agreement with the company president to issue up to 2 million additional shares of common stock in 2022 based on the earnings of McCollum in 2022. If net income exceeds $130 million, the president will receive 1 million shares; 2 million shares if net income exceeds $140 million. Mar. 31 Issued 4 million shares in exchange for plant facilities. Net income for 2021 was $139 million.Required: Compute basic and diluted earnings per share for the year ended December 31, 2021