Possibilities for recording liability
Course:- Cost Accounting
Reference No.:- EM13298393

Assignment Help
Assignment Help >> Cost Accounting

I have a liability that was created by the exercise of a put option on a warrant. The warrant had a strike price of $0.001 and the put has a value of $2.7M. The put option first was available in April 2007 and was exercised in April 2009. In recording the liability, I categorized it as an expense.

Although the liability and corresponding expense should have been accrued since April 2007, it was not recognized until April 2009. My question is, was it proper to record the liability as an expense when the entry was made?

Are there any other possibilities for recording this liability?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Cost Accounting) Materials
Prepare the journal entries to record the closing-out of the balance in manufacturing overhead to the appropriate accounts, and show any necessary calculations in the notes
Determine the fair value of the derivative and state whether it would be an asset or a liability - Under this circumstance make the entry for the fair value as of December 31,
Accountants frequently refer to "goods available for sale."  Is this concept the same as ending inventory?  How much zinc, in pounds, was "available for sale?"
In the accounting department of Frobisher Company, a manufacturing company that produces a popular consumer product. You typically prepare the variance analysis report and p
Prepare a T account for the accounts payable creditor accounts and post the transactions from the purchases journal to the creditor accounts, and determine their ending balanc
Identify suitable method to separate the fixed and variable elements of total costs and explain the identified method calculate the revenue that should be expected in year 20
Write an autobiography in complete sentences with proper grammar and spelling. Following the structure provided below, your autobiography should contain 3 paragraphs (minimum
Your final portfolio for the class will be to create a marketing plan for the company of your choice. You will need to select a company that you have not used for your other