To encourage employee ownership of the company's $1 par common shares, Blum, Inc. permits its employees to buy shares directly from the company at a 20% discount. During January, employees purchased 10,000 shares at a time when the market price of the shares was $15 per share. Related to the employee share purchases, how much compensation expense will Blum record for March? Multiple Choice $120,000 O $140,000 O so O $30,000

To encourage employee ownership of the company's $1 par common shares, Blum, Inc. permits its employees to buy shares directly from the company at a 20% discount. During January, employees purchased 10,000 shares at a time when the market price of the shares was $15 per share. Related to the employee share purchases, how much compensation expense will Blum record for March? Multiple Choice $120,000 O $140,000 O so O $30,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters into the following transactions on December 31: 1. Accepts a subscription contract to 7,000 shares of common stock at $41 per share and receives a 30% down payment. 2. Collects the remaining balance of the subscription contract and issues the common stock. 3. Acquires a building by paying $2,000 cash and issuing 3,000 shares of common stock and 900 shares of preferred stock. Common stock is currently selling at $45 per share; preferred stock has no current market value. The building is appraised at $1,310,000. 4. Sells 1,000 shares of common stock at $48 per share. 5. Sells 900 shares of preferred stock at $110 per share. 6. Declares a three-for-one stock split on the common stock, reducing the stated value to $2.00 per share. Required: Prepare the journal entries to record the preceding transactions.…
Yola Corporation is required to include 15 items in their 10-K for the year ending 9/30/21. In which required item from the 10-K would this content be located? Emily Smith, Chief Product Officer Total non Equity Compensation $1,250,000 Question 28 options: a) Certain Relationships and Related Transactions b) Executive Compensation c) Business d) Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
ABC was formed by an investor who exchanged 1,000,000 for 100,000 shares of stock on August 1. ABC prepaid 18 months of rent by paying $96,000. ABC hired 3 employees and agreed to pay each $100,000/year. ABC agreed to pay at the end of each month; after the services are performed. ABC withholds 20% for federal tax; 5% for state tax; and 7.65% for FICA. ABC sold services over the year for $1,200,000 on account. They warranty their work for 1 year. ABC estimated 1% for bad debts using the percent of sales method. ABC estimated $100,000 in warranty work, but only paid out $20,000 (as cash back) in warranties through the end of the year. ABC received $400,000 in cash against the receivable by year-end. On 8/15 ABC purchased equipment signing a note for $400,000. ABC depreciated the equipment by $60,000 for book purposes and $50,000 for tax purposes. ABC accrued $6,000 in interest expense. On 8/1 ABC invested $200,000 into muni-bonds. The bonds paid $9,000 in interest. ABC driver got a…
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Teasler Inc. currently trades at $40 and has 9 million shares outstanding with Net Income of $12 Million. The Board decides to use a rights offering to raise new capital. Each shareholder will receive one right for each share. Laila Sims currently owns 4,000 shares of Teasler stock. Four rights plus $34 cash are needed to buy one new share. The ex-rights date is in 30 days. a. What is the value of a right? b-1. How many of the new shares could Laila buy if she exercised all her rights? b-2. How much cash would this require? c. How many new shares is Teasler issuing and what are the proceeds? d. If the price of Teasler shares price moves to $30 what is the value of the right ( Assume still rights-on)
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How to journal: Purchased 7,500 shares of Solstice Corp. at $40 per share plus a $150 brokerage commission.
2
On January 15th, Sahar purchased 5,000 shares of National Cement Co. on a margin of $160 per share. On March 15th the price of National Cement stock declined to $140. The initial margin and maintenance margin requirements were 60% and 40% respectively. What is the actual market value (AM) on March 5th ? 54.29% 42.86 % 40% 60%

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