The following events occurred regarding the company's executive compensation plan.2. On 1/1/x4, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 20,000 shares ofcommon stock at $40 per share. The par value is $10 per share.3. On 2/1/x4, options were granted to each of five executives to purchase 20,000 shares. The options were non-transferable and the executive had toremain an employee of the company to exercise the option. The options expire on 2/1/x6. It is assumed that the options were for services performedequally in 20x4 and 20x5. The Black-Scholes option pricing model determines total compensation expense to be $2,100,000.3. At 2/1/x6, four executives exercised their options. The fifth executive chose not to exercise his options, which therefore were forfeitedPrepare the journal entries for 2/1/x6

The objective of the question is to prepare the journal entries for the company's executive…

Answered: The following events occurred regarding…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How much is the ending balance of the Accrued Salaries Payable that will show in the 2023 Statement of Financial Position? How much is the ending balance of the Share Options Outstanding that will show in the 2023 Statement of Financial Position?
Give the necessary Journal Entries to record the following transactions : (a) A shareholder was holding 500 equity shares of $ 10 each of a company issued at 10% discount. He paid $ 2 on application, $ 3 on allotment but could not pay the first call of $ 3 per share and his shares were forfeited by the directors. These shares were reissued subsequently at a price of $ 7 per share. (b) A holds 200 equity shares of $ 10 each on which he paid $ 1 per share as application money. B holds 300 equity shares of $ 10 each on which he has paid $ 1 and $ 3 per share as application and allotment money respectively. Cholds 500 equity shares of $ 10 each on which he has paid $ 1 on application, $ 3 on allotment and $ 2 on first call. They all fail to pay their arrears and the second call of $ 2 per share and the directors, therefore, forfeited the shares. All these shares were reissued subsequently @ $ 11 per share as fully paid.
2. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Issued 100,000 shares of common stock. Stock has par value of per $0.60 share and was issued at $30.00 per share. Issued 14,000 shares of preferred stock at par value as payment in exchange for legal services. • Exchanged 260,000 shares of common stock for land with an appraised value of $650,000.00 and a building with an appraised value of $500,000.00 Earned Net income $900,000.00.) Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide:. A. Prepare Mulatto Company's Stockholders equity section of the balance sheet at December 31, 2020. The following information must be…
For the current year, Spiderman Company received a donation of 3,000 shares with a par value of P20 from the shareholder. The market value of the share was P150. The shares were originally issued P50 per share. As a result of the donation, what was the decrease in the shareholder’s equity?
Microsoft provides compensation to executives in the form of a variety of incentive compensation plans, including restricted stock award grants. The following is an excerpt from a disclosure note from Microsoft's 2020 annual report: Note 18 Employee Stock and Savings Plans (in part) Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally vest over a five-year period.... During fiscal year 2020, the following activity occurred under our plans: Stock awards: Nonvested balance, beginning of year. Granted Vested Forfeited Nonvested balance, end of year Shares (in) millions) 147 53 (65) (9) Compensation expense in fiscal 2020 126 Weighted Average Grant-Date Fair Value $78.49 140.49 75.35 90.30 $ 105.23 Required: If all awards are granted, acquired, vested, and forfeited evenly throughout the year, what is the compensation expense in fiscal 2020 pertaining to the previous and current stock awards? Assume forfeited shares were…
Microsoft provides compensation to executives in the form of a variety of incentive compensation plans, including restricted stock award grants. The following is an excerpt from a disclosure note from Microsoft's 2020 annual report Note 18 Employee Stock and Savings Plans (in part) Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally vest over a five-year period... During fiscal year 2020, the following activity occurred under our plans: Stock awards: Nonvested balance, beginning of year Granted Vested Forfeited Nonvested balance, end of year Shares (in millions) 147 53 (65) 126 Weighted Average Grant-Date Fair Value $ 78.49 140,49 75.35 90.30 $ 105.23 Required: If all awards are granted, acquired, vested, and forfeited evenly throughout the year, what is the compensation expense in fiscal 2020 pertaining to the previous and current stock awards? Assume forfeited shares were granted evenly throughout the three previous…
9
In September, the board of directors of chaparral steel approved a 2 for 1 stock split. After the split, how many shares of chaparral steel stock will an investor have if he or she owned 230 shares before the split?
How much is the ending balance of the Accrued Salaries Payable that will show in the 2026 Statement of Financial Position? How much is the ending balance of the Share Options Outstanding that will show in the 2026 Statement of Financial Position?
A shareholder owns 15,000 shares costing P3,000,000. Subsequently, the shareholder receives notice that share is split 2-for-1. What amount of gain on sale will be recognized if 6,000 shares will be sold for P228 per share?

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