Ex 3. On December 31, 2026, Orange Mountain Co. grants its employees options to purchase1,000 shares of $1 par common stock for $5 per share. The options vest after 1 year and expireon December 31, 2031. On the date of grant, the shares are trading for $10 per share and theoptions have a fair value of $3 each.Make the journal entry to recognize the compensation expense associated with the options onDecember 31, 2027.Assume all the options were exercised on January 1, 2028. Make the journal entry to recognizethe exercise of the stock options.What additional information would you need to determine the effect of the stock options onDilutive EPS?

According to the question given, we need to prepare the journal entries to record the employees'…

Answered: Ex 3. On December 31, 2026, Orange…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

answer quickly
wssssssss
Please do not give solution in image format thanku
A-11: Put option On March 1, 2022, Hudson Corp. purchased a put option on shares of ICA stock. The contract was for 100 shares at a strike price of $120 per share, with an expiration date of May 31, 2022. The option contract premium was $30. On March 31, a market appraisal estimated the time value of the option to be $20. Hudson settled the option contract on May 10. Prices of ICA stock during the option period are provided below. March 1 $120 March 31 $110 May 10 $115 At what amount would Hudson report as the value of the put option in its March 31, 2022 balance sheet? Price of ICA stock: Put Option account balance as of March 31, 2022: $ 6,000
Subject : Accounting Larry started working for Burgers, Inc. on June 1, 2020. At the end of 2020, Larry received 100 Burgers, Inc. stock options as part of his compensation. Each option allowed him to purchase one share of Burgers, Inc. for $20.00. Shares of Burgers, Inc. traded at $25.00 per share on December 31, 2020. An independent valuation firm valued each option at $5.00 as of that date. Larry did not make a § 83(b) election. Larry exercised all his options on September 15, 2022. On that date, stock of Burgers, Inc. traded for 37.00 per share on the open market. Determine: The amount of income Larry must recognize in 2020, upon receiving the options. The amount of income Larry must recognize in 2022, upon exercising the options. Larry’s basis in the Bergers, Inc. stock he purchased through exercising the options.
P16.3 Brondon Corp. purchased a put option on Mykia common shares on July 7, 2023, for $480. The put option is for 350 shares, and the strike price is $50. The option expires on January 31, 2024. The following data are available with respect to the put option: Date Sept. 30, 2023 Dec. 31, 2023 Jan. 31, 2024 Instructions Prepare the journal entries for Brondon for the following dates: July 7, 2023: Invests in put option on Mykia shares. 1 September 30, 2023: Brondon prepares financial statements. 1. December 31, 2023: Brondon prepares financial statements. January 31, 2024: Put option expires. Fair Value of Option $250 100 O Market Price of Mykia Shares $56 per share $58 per share $62 per share
Q.
4. On April 1, 2021, Bleta Corp purchases a call option for $500, which gives Beta the right to buy 1,000 shares of ABC Inc. for $30 each until December 1, 2021. ABC Inc. shares are currently trading for $30 On June 30, 2021, the options are trading at $4,800 and the shares at $32 each. On December 1, 2021, the options expire with no value. On December 1, 2021. Beta's entry would be a. No entry required b. Loss 2,000 Derivatives-Financial Assets c. Loss 2,000 4,300 Derivatives-Financial Assets d.Loss 4,300 4,800 Derivatives-Financial Assets 4,800
Question 31 Choose the correct answer from the choices.
If there is a credit balance of 500 on the cash column of the cash book it would most likely mean

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS