Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 19, Problem 19.12BE
To determine
The treatment of restricted stock option and journal entries to record it.
Given information:
Number of shares issued is 100,000
Par value of shares is $1.
Market value of share on the date of issue is $45 per share.
Vesting period 4 years.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares for $385,000 on June 30, 2016. Share issue costs were $1,500. One year from the issue date (July 1, 2017), the corporation retired 10% of the shares for $39,500. Required: 1. Prepare the journal entry to record the issuance of the shares. 2. Prepare the journal entry to record the declaration of a $2 per share dividend on December 1, 2016. 3. Prepare the journal entry to record the payment of the dividend on December 31, 2016. 4. Prepare the journal entry to record the retirement of the shares. (Note: You may wish to compare your solution to this problem with that of Problem 14–16, which deals with parallel issues of debt issue costs and the retirement of debt.)
ABC issued a prospectus for 100,000 $5 shares on 1 January 2017.
The prospectus required payment of $3 on application and $2 in one years time. The company received applications for a total of 125,000 shares - these applications were received throughout the month of January.
On 31 January 2017 ABC issued 100,000 shares.
Required:
Prepare the journal entries to account for the issue of shares assuming the excess money was offset against the call due in one years time.
During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares for $385,000 on June 30, 2024. Share issue costs were $1,500. One year from the issue date (July 1, 2025), the corporation retired 10% of the shares for $39,500.
Required:
1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $2 per share dividend on December 1, 2024, the payment of the dividend on December 31, 2024, and the retirement of the shares.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter 19 Solutions
Intermediate Accounting
Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.1MCCh. 19 - Prob. 19.2MCCh. 19 - Prob. 19.3MCCh. 19 - Prob. 19.4MCCh. 19 - Prob. 19.5MCCh. 19 - Prob. 19.6MCCh. 19 - Prob. 19.7MCCh. 19 - Prob. 19.8MCCh. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.3BECh. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Employee Stock Options, Liability-Classified...Ch. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Prob. 19.10BECh. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - Prob. 19.13BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.17BECh. 19 - Prob. 19.18BECh. 19 - Prob. 19.19BECh. 19 - Prob. 19.20BECh. 19 - Prob. 19.21BECh. 19 - Prob. 19.22BECh. 19 - Prob. 19.23BECh. 19 - Prob. 19.24BECh. 19 - Prob. 19.25BECh. 19 - Prob. 19.26BECh. 19 - Prob. 19.27BECh. 19 - Prob. 19.28BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Employee Stock Options. Equity-Classified Awards....Ch. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.12ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.16ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - Prob. 19.4PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - Prob. 19.9PCh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 1JCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Journalize the transactions and calculate how many shares of stock are outstanding at August 3.arrow_forwardJames Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its second year of business, the company has the following transactions: Journalize the transactions.arrow_forwardDuring its first year of operations, Cupola Fan Corporation issued 48,000 of $1 par Class B shares for $475,000 on June 30, 2021. Share issue costs were $3,300. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $48,500. Required: 1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $2.70 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) please dont give answer in the image formatarrow_forward
- During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares for $435,000 on June 30, 2021. Share issue costs were $2,500. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $44,500. Required:1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $3.00 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)arrow_forwardDuring its first year of operations, Cupola Fan Corporation issued 34,000 of $1 par Class B shares for $405,000 on June 30, 2021. Share issue costs were $1,900. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $41,500. Required:1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $2.40 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. 1. Record the issuance of the shares 2. Record the declaration of a $2.40 per share dividend on December 1, 2021. 3. Record the payment of the dividend on December 31, 2021. 4. Record the retirement of the shares.arrow_forwardCool Company has decided to take their company public on January 1, 2014. Cool company had 1,000 shares authorized. The following transactions occurred. e.) on January 1, 2015, cool company re-issued 1,000 shares of treasury stock at a price of $30 per share. Record the journal entry for this share reissuance. Label debits and credits and include classification of each account. f.) on March 30, 2016, Cool company reissued 500 shares of treasury stock at a price of $20 per share. Record the journal entry for this share reissuance. Make sure to clearly label debits and credits and include the classification of each account.arrow_forward
- On 1/1/2020 Coopers issued 20 restricted stock shares when the stock was selling for $22. The stock has a $1 par and vesting occurs after two years. Prepare the necessary entries for all of the dates assuming the employees are still working for the company in 2 years. On 1/1/2020 Coopers issued 2,000 shares of restricted-stock units to its CEO, Lisa Leslie. Each unit has a fair value of $30 per share, which is equal to the fair value of one share of stock. Additional information is as follows. The service period related to the restricted stock units is 3 years. Vesting occurs if Leslie stays with the company for 3 years. The par value of the stock is $1 per share. Prepare the necessary entries for all of the dates assuming the employees are still working for the company in 3 years.arrow_forwardOriole Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2020, the company has the following stock transactions. Jan. 15 Issued 430,000 shares of stock at $6 per share. Sept. 5 Purchased 34,000 shares of treasury stock at $8 per share. Journalize the transactions for Oriole Corporation. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Cash Common Stock Pald-In Capltal In Excess of Stated Value-Common Stock >arrow_forwardYola 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? "During the 4th quarter of fiscal 2021 we purchased 750,000 shares of company stock at an average price of $75 per share". Question 30 options: a) Market for Registrants Common Equity and Related Stockholders' Matters b) Legal Proceedings c) Business d) Financial Statements & Supplementary Dataarrow_forward
- In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued170 million shares of its $1 par common stock at $34 per share.Required:Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the followingtransactions:1. On January 2, 2018, Borland reacquired 10 million shares at $32.50 per share.2. On March 3, 2018, Borland reacquired 10 million shares at $36 per share.3. On August 13, 2018, Borland sold 1 million shares at $42 per share.4. On December 15, 2018, Borland sold 2 million shares at $36 per share.arrow_forwardOverland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Overland Corporation took part in the following selected transactions. Prepare journal entry(entries) for following independent event. a. Purchased 6,000 shares of treasury stock at $70 per share. The treksury shares purchased were issued in 2018 at $46 per share. Assuming Overland uses the retirement method to prepare entry and before this transaction the company had $100,000 credit balance of Paid-in capital- shares repurchase and $800,000 retained earnings b. The board votes a 4-for-1 stock split. At the date, the market value is $80 c. The board votes a 150% stock dividend. At the date, the market value is $80, assuming the company treats the distribution as "large" stock dividends effected in the form of a stock dividend and before this transaction the company has 54,000 shares of common stockarrow_forwardOn January 1, 2021, a company had 125,000 issued shares and 25,000 treasury shares. During the year, 13,000 treasury shares were reissued. Right after the reissuance of the treasury shares, the company declared a 3-for-1 split. In December 2021, additional 5,000 shares were purchased and placed in treasury. Determine the number of shares issued.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Earnings per share (EPS), basic and diluted; Author: Bionic Turtle;https://www.youtube.com/watch?v=i2IJTpvZmH4;License: Standard Youtube License