On January 1, 2019, the shareholders of Aylmer approved a plan that grants options to the company's executives to purchase 10,000 of the company's common shares each. The options are granted on January 1, 2020 and may be exercised at any time after December 31, 2022. The exercise price per share is $32. Based on an options pricing model, the total compensation expense will be $150,000. At December 31, 2020, the market price is $26 per share.

Q: Describe LIFO Reserves and LIFO Liquidation.

A:

Q: Define common stock.

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

Q: During its first year of operations, Bonita Corporation had the following transactions pertaining to…

A: PARTICULARS DEBIT CREDIT CASH ACCOUNT 502,200                          TO COMMON STOCK   418,500…

Q: Explain with examples where the LIFO method of handling stock applies.

A: The Last-In, First-Out (LIFO) method is an inventory valuation method used in accounting. It assumes…

Q: Define authorized stock.

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Explain the accounting for stock-appreciation rights plans.

A: Share Appreciation Rights (SARs): The awards which offer the employees the right to receive either…

Q: What is the monetary amount called that is printed on a stock certificate and listed in the charter?…

A: Stock certificate: It implies to a legal document that represents the legal ownership of the number…

Q: Describe the features of a common stock and explain what you understand by primary and secondary…

A: Common stock is the shares issued by the company to its shareholders. Common shareholders enjoy…

Q: How do you journalize entries for stock dividends?

A: Stock dividend is a method of capitalizing the profits, It can be issued by debiting retained…

Q: Define tracking stock

A: Tracking stock is also called as targeted stock. It is issued by a company for a particular division…

Q: Subscription advisory services provide information and recommendations

A: Subscription advisory services is new and advanced techniques emerged in this era.

Q: Describe the nature and the general treatment of Trading Stock

A: The stock market is the market place which has the collection of various shares and stocks of…

Q: What is the difference between common stock, preferred stock and capital? Do all of these accounts…

A: Step1: Difference between common stock, preferred stock and capital. We have,Common stock is a type…

Q: ! Required information [The following information applies to the questions displayed below.] On…

A: A journal is the company's official book on which all business transactions are recorded in…

Q: Describe the accounting and reporting for stock compensation plans.

A:

Q: In discussing how to value and report investment securities, your text also talks about trading…

A: Investment in securities made by the management for the objective of utilizing their idle cash in…

Q: converted into preferred stock. Assuming that the book value method was used, what entry would be…

A: When converting common stock into preferred stock using the book value method, it means that the…

Q: On January 1, 2022, the stockholders' equity section of Bramble Corporation shows common stock ($6…

A: Treasury stock : stock repurchased from the stockholders by the company that issued it. The…

Q: On January 1, 2022, the stockholders' equity section of Bridgeport Corporation shows common stock…

A: Treasury stock : stock repurchased from the stockholders by the company that issued it. The…

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.