On 3 August 2023, Sunny Smiles Ltd had a balance of $23,500 in their options account. This reflected 50,000 fully paid options which were on issue. Each option, if exercised, entitled the holder to purchase one ordinary share for $3, payable in full upon exercise of the option. When the options expired on 1 September 2023, 75% had been exercised. Options which were not exercised duly lapsed. After all transactions relating to the exercise of the options had been completed, what would the balance in Sunny Smiles Ltd's lapsed options reserve be? 12500 5875 6250 17625
On 3 August 2023, Sunny Smiles Ltd had a balance of $23,500 in their options account. This reflected 50,000 fully paid options which were on issue. Each option, if exercised, entitled the holder to purchase one ordinary share for $3, payable in full upon exercise of the option. When the options expired on 1 September 2023, 75% had been exercised. Options which were not exercised duly lapsed. After all transactions relating to the exercise of the options had been completed, what would the balance in Sunny Smiles Ltd's lapsed options reserve be? 12500 5875 6250 17625
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On 3 August 2023, Sunny Smiles Ltd had a balance of $23,500 in their options account. This reflected 50,000 fully paid options which were on issue. Each option, if exercised, entitled the holder to purchase one ordinary share for $3, payable in full upon exercise of the option. When the options expired on 1 September 2023, 75% had been exercised. Options which were not exercised duly lapsed. After all transactions relating to the exercise of the options had been completed, what would the balance in Sunny Smiles Ltd's lapsed options reserve be?
|
12500 |
||
|
5875 |
||
|
6250 |
||
|
17625 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
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,
Accounting
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