Prepare the necessary entries from

Assignment Help Accounting Basics
Reference no: EM13114115

Stock Options

Prepare the necessary entries from 1/1/10-2/1/12 for the following events using the fair value method. If no entry is needed, write "No Entry Necessary."

1. On 1/1/10, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 12,000 shares of common stock at $40 per share. The par value is $10 per share.

2. On 2/1/10, options were granted to each of five executives to purchase 12,000 shares. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options expire on 2/1/12. It is assumed that the options were for services performed equally in 2010 and 2011. The Black-Scholes option pricing model determines total compensation expense to be $1,300,000.

3. At 2/1/12, four executives exercised their options. The fifth executive chose not to exercise his options, which therefore were forfeited.

Reference no: EM13114115

Questions Cloud

To what height does the water rise in the graduated cylinder : You have a 100.0- mL graduated cylinder containing 50.0 mL of water. you drop a 115-g piece of brass into the water. To what height does the water rise in the graduated cylinder.
What physical quantity is represented : Air is a mixture of N2,O2,Ar,Co2,Ne,He,CH4,lessor amounts of the other gases and possibly substantial amount of H2O in vapor form.
Record dividends payable on common and preferred stock : A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.
Write down a forecast of macy''s income : Write down a forecast of Macy's income before taxes if Macy's selling efforts generates the products sales below instead of the ones shown in the table above (all other factors remain unaffected).
Prepare the necessary entries from : Stock Options, Prepare the necessary entries from 1/1/10-2/1/12 for the following events using the fair value method. If no entry is needed, write "No Entry Necessary."
Compute the proper earnings per share for 2010 : During the year 2010, the corporation earned $600,000 after deducting all expenses. The tax rate was 30%., Instructions:- Compute the proper earnings per share for 2010.
Prepare the general journal entries related wyrick company : Instructions  Prepare the general journal entries necessary to record these transactions.  Equity transactions. Presented below is information related to Wyrick Company:
Prepare the general journal entries : Prepare the general journal entries for Korman Company for:(a) the 2010 adjusting entry.(b) the sale of the Thomas Corp. stock.(c) the purchase of the Werth Stores' stock.(d) the 2011 adjusting entry
Why plaintiffs claimed among other things : The plaintiffs claimed that, among other things, the new rules violated their right to freedom of speech. They asked the court to enjoin the enforcement of the rules. Should the court grant this request? Why or why not?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Corporate tax rate question

A machine that originally cost $25,000 and was depreciated on a straight line basis has one year of its expected 5-year life remaining. Its current value is $12,000. The corporate tax rate is 34%.

  Hsbc drug cartel money laundering guide

Define the major problem or problems. Indicate how the problems are related to one another: What has happened to the key players since the events in this case?

  Computing kanbans in production process

A manufacturer of thermostats uses a kanban system to control the flow of materials. The packaging center processes 10 thermostats an hour and receives completed thermostats every 30 minutes. Containers hold 5 thermostats each.

  Prepare ledger accounts

Explain what you understand by the term depreciation and it's relevance in the preparation of financial statements, Prepare ledger accounts, Prepare an income statement, Prepare a balanced sheet

  Determining the type of market

For each of the following statements, identify the kind of market it describes. Employ an example from the readings or the internet for each characteristic and explain your choice.

  Details regarding journal entries

On November 19, 2007, Albatross Corporation purchased 30,000 shares of ABC Corporation stock for $480,000, and 10,000 shares of Milken Corporation stock for $250,000. In Microsoft Excel format, please prepare a journal with Albatross's entries for ..

  Compute taxable income and income taxes payable

Evaluate taxable income and income taxes payable. Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes.

  Information about operating income

Greenville Corporation is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows:

  Journal entries-internal service fund to record transactions

William County opted to account for its duplication service center in the internal service fund. Previously the center had been accounted for in county's general fund. During first month in which it was accounted for as an internal service fund cent..

  Disadvantages of accrual accounting

What are advantages of public firms reporting to investors using an accrual and not a cash approach? What are the disadvantages?

  Indicate the generally accepted accounting principles

Provide the fund level entries in general journal form needed to conform to basically accepted accounting principles. If no entry is needed, so indicate.

  Frequent flier miles and asset classes

Explain how your position changes if the employer reports to the IRS the value of the employees' frequent-flyer mileage.

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