Requirement: Provide the entries in 20x1.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Stock rights
Family Co. holds 1,000 ordinary shares of Lechon Co. as
investment. On Sept. 30, 20x1, Lechon Co. issues stock rights
on a "1-for-1" basis. The stock rights are exercisable until June
Transcribed Image Text:Stock rights Family Co. holds 1,000 ordinary shares of Lechon Co. as investment. On Sept. 30, 20x1, Lechon Co. issues stock rights on a "1-for-1" basis. The stock rights are exercisable until June
30, 20x2. The fair values per stock right are P5 and P6 on Sept.
30, 20x1 and Dec. 31, 20x1, respectively. The stock rights
remain outstanding on Dec. 31, 20x1.
Requirement: Provide the entries in 20x1.
Transcribed Image Text:30, 20x2. The fair values per stock right are P5 and P6 on Sept. 30, 20x1 and Dec. 31, 20x1, respectively. The stock rights remain outstanding on Dec. 31, 20x1. Requirement: Provide the entries in 20x1.
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