EXERCISE 16-8
Cash 3,150,000
Unamortized Bond Issue Costs 30,000 Bonds Payable 3,000,000 Premium on Bonds Payable 102,000 Paid-in Capital—Stock Warrants 18,000 Interest Expense 60,000

EXERCISE 16-9
(a) Cash ($3,000,000 X 1.02) 3,060,000 Discount on Bonds Payable 60,000 Bonds Payable 3,000,000 Paid-in Capital—Stock Warrants 120,000
(b) Cash 3,060,000 Discount on Bonds Payable 1,200 Bonds Payable 3,000,000 Paid-in Capital—Stock Warrants 61,200

EXERCISE 16-16
(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 |
|Stock 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 |
|Stock 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 |

|(b) |Earnings Per Share = |$3,256,000 (Net Income) |= $1.68 |
| | |1,939,000 (Weighted-Average Shares) | |

|(c) |Earnings Per Share = |$3,256,000 – $900,000 |= $1.22 |
| | |1,939,000 | |

(d) Income from continuing operations $1.46 Loss from discontinued operations (0.22) Income before extraordinary item 1.24 Extraordinary gain 0.44 Net income $1.68

Net income $3,256,000 Deduct extraordinary gain (864,000 ) Add loss from discontinued operations 432,000 Income from continuing operations $2,824,000

EXERCISE 16-23
(a) 1. Number of shares for basic earnings per share.

|Dates |Shares |Fraction |Weighted |
|Outstanding |Outstanding |of Year |Shares |
|Jan. 1–April 1 |800,000 |3/12 |200,000 |
|April 1–Dec. 1 |1,400,000 |9/12 |1,050,000 |
| Weighted-average number of shares outstanding |1,250,000 |

2. Number of shares for diluted earnings per share:

|Dates |Shares |Fraction |Weighted |