Prepare the december selected journal entries

Assignment Help Accounting Basics

Reference no: EM131983480

Problem

Stock Options

On December 30, 2014, Yang Corporation granted compensatory stock options for 5,000 shares of its $1 par value common stock to certain of its key employees. The options may be exercised after 2 years of employment. Market price of the common stock on that date was $30 per share and the option price was $30 per share. Using a fair value option pricing model, total compensation expense is determined to be $80,000. The options are exercisable beginning January 1, 2017, providing those key employees are still in the employ of the company at the time the options are exercised. The options expire on January 1, 2018.

Instructions: Prepare the following selected journal entries for the company on the answer sheet (if no entry required, state "no entry").

(1) December 30, 2014.

(2) December 31, 2015.

(3) January 1, 2017, assuming 90% of the options were exercised at that date.

(4) January 1, 2018, for the 10% of the options that expired.

Reference no: EM131983480

Questions Cloud

What is appropriate journal entry to record a stock dividend : What is the appropriate journal entry to record a 35% stock dividend if the market price of the common stock is $45 per share when the dividend is declared?

Confidence of colleagues and external contacts : How can you best gain and maintain the trust and confidence of colleagues and external contacts through professional conduct?

How much compensation cost should prime recognize : How much compensation cost should Prime recognize in each year of the award's service period?

How is each shareholders personal income tax return affected : What is ChadCo's E&P‘? How is each shareholder's personal income tax return affected for the current year by the tax items of ChadCo?

Prepare the december selected journal entries : Prepare the December 30, 2014 selected journal entries for the company on the answer sheet (if no entry required, state "no entry").

Research two articles on the topic of emerging enterprise : Write a brief synthesis and summary of the two articles. How are the topics of the two articles related? What information was relevant and why?

What you need to do to provide support for project team : SIT60316 - Advanced Diploma of Hospitality Management - Develop a detailed operational plan that ensures the objectives and strategies outlined are met by work

Determine stefanis total standard cost per unit : Manufacturing overhead. Overhead is applied at a rate of $4.50 per direct labor hour. Determine Stefani's total standard cost per unit.

What is the profit or loss associated with minix : IPS operates a factory which produces the MiniY and the MiniX. With the costs that you calculate, what is the profit or loss associated with MiniX?

User Account

All Pages