Reference no: EM132726200
Question - On January 1, 2020, the shareholders of Chargers Inc. adopted a stock option plan for its top executives, where each could receive rights to purchase up to 3,000 common shares at $ 40 per share. At this date, the shares were trading for $ 32 per share.
On February 1, 2020, options were granted to five executives to purchase 3,000 shares each. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options expire on February 1, 2022. It is assumed that the options were for services performed equally in 2020 and 2021. The Black-Scholes option pricing model determined total compensation expense to be $ 390,000.
On February 1, 2022, four executives exercised their options. The fifth executive chose not to exercise her options, which therefore were forfeited.
Instructions - Prepare the necessary entries for the above events, on:
a. January 1, 2020;
b. February 1, 2020;
c. December 31, 2020;
d. December 31, 2021;
e. February 1, 2022.
|
Penetration testing is simulated cyberattack
: Penetration testing is a simulated cyberattack against a computer or network that checks for exploitable vulnerabilities.
|
|
What was the number of shares to be used
: On November 1, Benn purchased 120,000 of its own stock. What was the number of shares to be used in computing basic earnings per share?
|
|
What is significant deficiencies
: If a company has low Detection Risk in its overall financial reporting or in a particular account? Often it will have high Inherent Risk and high Control Risk.
|
|
Significant impact on businesses and industries
: Blockchain has made a significant impact on businesses and industries.
|
|
Prepare the necessary entries for the events
: On February 1, 2020, options were granted to five executives to purchase 3,000 shares each. Prepare the necessary entries for the events
|
|
Agile software development environment
: In today's fast-paced, agile software development environment, how can we make sure security is implemented into the design?
|
|
Which audit evidence concerning proper segregation of duties
: An auditor, with regard to a significant account or class of transactions, even if he assesses control risk to be extremely low, must perform some
|
|
Which situations would an auditor most likely use a reliance
: Which situations would an auditor most likely use a reliance strategy? The company has been slow to update its IT system to reflect changes in billing practices
|
|
Executive program practical connection
: At UC, it is a priority that students are provided with strong educational programs and courses that allow them to be servant-leaders in their disciplines
|