Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 25RQ
To determine
Show the effect of granting the options on the
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Metropolis Company adopted a stock-option plan on October 12, 2021. The plan provided 20,000 shares of $2 par value common stock to three of its officers: Kent Clark, Lane Lois, and Luther Lexx. On January 1, 2022, stock options were granted to the three officers (one option enables the officer to purchase one share of common stock) as follows: Kent Clark (president): 12,000 options; 8,000 for services performed in 2022, 3,000 for services performed in 2023, and 1,000 for services performed in 2024. Lane Lois (controller): 5,000 options; 2,000 for services performed in 2022, 2,000 for services performed in 2023, and 1,000 for services performed in 2024. Luther Lexx (assistant controller): 3,000 options; 1,000 for services performed in 2022, 1,500 for services performed in 2023, 500 for services performed in 2024. The market value of Metropolis Company common stock at the grant date was $32 per share. The stock options permit the officers to purchase the common stock at a price of $19…
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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. They have asked you to prepare the company’s journal entries and statement of owner’s equity based on the following information.
Issued 45,500 shares of common stock. Stock has par value of 0.30 per share and was issued at $30 per share.
Issued 8, 000 shares of preferred stock at par value as payment in exchange for legal services.
Exchanged 160,000 shares of common stock for land with an appraised value of $400,000.00 and a building with an appraised value of $650,000.00.
Earned Net income $650,000.00.
Paid dividends to preferred shareholders as well as $2 per share to common stockholders.
Using the info above and as a guide:
Prepare the…
Chapter 15 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 15 - What does the trust indenture used by a...Ch. 15 - Long-term creditors often insist upon placing...Ch. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Mansfield Corporation has outstanding an issue of...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - What do you consider to be the most important...Ch. 15 - What is the primary responsibility of an...Ch. 15 - In the audit of a small corporation that issues...Ch. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Corporations sometimes issue their own capital...Ch. 15 - Prob. 21RQCh. 15 - Prob. 22RQCh. 15 - Prob. 23RQCh. 15 - Prob. 24RQCh. 15 - Prob. 25RQCh. 15 - Prob. 26RQCh. 15 - Prob. 27QRACh. 15 - Prob. 28QRACh. 15 - Prob. 29QRACh. 15 - You are retained by Columbia Corporation to audit...Ch. 15 - Prob. 31QRACh. 15 - Prob. 32AOQCh. 15 - Prob. 32BOQCh. 15 - Prob. 32COQCh. 15 - Prob. 32DOQCh. 15 - Prob. 32EOQCh. 15 - When a client uses paper stock certificates, an...Ch. 15 - Prob. 32GOQCh. 15 - The auditors can best verify a clients bond...Ch. 15 - Prob. 32IOQCh. 15 - All corporate capital stock transactions should...Ch. 15 - Prob. 32KOQCh. 15 - Prob. 32LOQCh. 15 - Prob. 32MOQCh. 15 - Prob. 32NOQCh. 15 - Prob. 32OOQCh. 15 - An auditor most likely would inspect loan...Ch. 15 - Prob. 32QOQCh. 15 - Match the following definitions (or partial...Ch. 15 - Prob. 34PCh. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37P
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