Journal entries to record issuance of stock options

Assignment Help Accounting Basics
Reference no: EM13143116

"On January 1, 2010 Magilla Inc granted stock options to officers and employees for the purchase of 20,000 shares of the company's $10 par common stock at $25 per share. The options were exercisable within a 5-yr period beg. 1/1/2012 by grantees still in company expiring 12/31/2016. The service period for this award is 2 yrs. Assume the value of option-pricing model to determine total compensation of expense to be $400,000

On april 1, 2011 - 3000 options were terminated when the employees resiged from the company. The market value of the common stock was $35 per share on this date.

On March 31, 2012 -- 12,000 options were exerceised when the market value of the common stock was $40 per share.

Prepare journal entries to record issuance of the stock options, termination of stock options, exercise of the stock option and the charges compensation expense for year ending 12/31/2010, 12/31/2011, 12/31/2012"

Reference no: EM13143116

Questions Cloud

Compare and contrast the molecular mechanisms of yeast : 1. What is the cellular/molecular mechanism to make yeast chemically competent? 2. Compare and contrast the molecular mechanisms of yeast and bacterial transformations. How are these procedures similar as well as different at a cellular/molecular ..
Draw the game tree for the outcome of the toss : The outcome of the toss is announced to II. Then II must guess whether I chose the fair or biased coin. If II is correct there is no payoff. If II is incorrect, she loses 1. Draw the game tree.
Is the interpersonal conflict handling : Is the interpersonal conflict handling style that may be used to stay away from conflict, ignore disagreements, or remain neutral.
What is the stock intrinsic value : Wayne's steaks inc. has a 9%, non callable,$100-par-value preferred stock issued outstanding.On january 1,the market price per share is $73.dividends are paid annualy on december31. if you require a 12% annual return on this investment, what is th..
Journal entries to record issuance of stock options : Prepare journal entries to record issuance of the stock options, termination of stock options, exercise of the stock option and the charges compensation expense for year ending 12/31/2010, 12/31/2011, 12/31/2012"
What is a specific way a healthy respiratory system : What is a specific way a healthy respiratory system differs from a diseased one?
How many grams of co will dissolve : The Henry's Law constant (k) for carbon monoxide in water at 25ºC is 9.71 x 10-4 mol/(L•atm). How many grams of CO will dissolve in 1.00 L of water if the partial pressure of CO is 2.75 atm?
Effect of legal, safety, and regulatory requirements : • Examination of the effect of legal, safety, and regulatory requirements on human resource process.  • Explanation of why the student does or does not agree with this statement: "Common sense and compassion in the workplace has been replaced by liti..
Explain the japanese culture : Explain the japanese culture and talk about values, beliefs, and behavior for this culture. Also, I must use one reference and the paper must in APA style.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Principal and interest on the debt

One quarter of the principal plus interest is payable on June 30 of each year beginning June 30, 2009. Property owners are assessed to provide the funds to pay the principal and interest on the debt.

  What is the payback period

ABC Company is adding a new product line that will require an investment of $1500000. The product line is estimated to generate cash inflows of $300,000 the first year, $250000 the second year, and $200,000 each year thereafter for ten more years...

  Determining trasfer price

Better home products Canadian operations are organized into two divisions: west and east. west division sells a component that could be used by east division in making one of the company's principal products.

  Compute the break-even point

In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.

  Annual per-share dividend

Analyze: what annual per-share dividend was paid to common stockholders in 2010?

  Size of the bank actual reserves problem

Suppose the National Bank of Commerce has excess reserves of $12,000 and outstanding checkable deposits of $150,000. If the reserve ratio is 20 percent, what is the size of the bank's actual reserves?

  Investments net present value

The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is:

  Journal entries for collections with cash discounts

Prepare the journal entries to record the November 17, 2011 (ignore cost of goods) and collection on November 26, 2011, assuming that the gross method of accounting for cash discounts is used.

  Determining return on total assets

Braverman Company's net income last year was $75,000 and its interest expense was $10,000. Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,000. The company's income tax rate was 30%. The co..

  Computations and entries of prince corporation

Prince Corporation purchased 960,000 shares of Smithtown Corporation's common stock (an 80% interest) for 21,200,000 on January 1, 2006. The 2,000,000 excess of investment cost over book value acquired was allocated to goodwill-Calculate the balan..

  Estimating the contract cost

During the year, job 123 a firm fixed price contract for the production of 3,000 raincoats will be started and completed. Estimate the contract cost.

  Types and benefits and intricacies of rules

Tax rules are often very precise. For instance, a taxpayer must ordinarily provide "over 50%" of another person's support in order to claim a dependency exemption. Why is the threshold "over 50%" as opposed to "50% or more"? Explain in detail.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd