Stock options : Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period. To determine : The compensation cost of stock options

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Answer 1

Question

Chapter 19, Problem 19.5E

(1)

To determine

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options

(2)

To determine

To prepare: Journal entry for the stock options awarded on January 1, 2016

(3)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entry for compensation expense on December 31, 2016

(4)

To determine

To journalize: The entry for compensation expense on December 31, 2017

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The audited accounts of Lindsay Co. for year-end August 31, 2014 show a profit of $3,115,000 after charging the following: Depreciation 430,000 Rent 175,000 Legal fees 1,350,000 Audit fees 88,000 Donations 119,000 Bad debts 242,000 Foreign Travel 395,750 Interest payments 62,375 Other Information: a. Legal fees are as follows: Expenses in respect of recovery of debts, $585,000 Expenses related to the increase private share capital, $765,000 b. Lindsay Co. donated $65,500 to UTECH University and $53,500 to HELP, a private charity registered under the Charities Act. c. Bad debts are as follows: • A loan of $76,130 to Derek Stan who failed to repayit. • $63,017, owed by Simplicity Ltd. which was declared bankrupt. • The balance is a percentage of receivables at year end which is deemed to be bad. d. Foreign travel expense included $268,210 for a vacation package for the marketing manager’s and his family plane…

What are Generally Accepted Accounting Principles (GAAP)? Ex

What are Generally Accepted Accounting Principles (GAAP)? Expl

Answer 2

Question

Chapter 19, Problem 19.5E

(1)

To determine

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options

(2)

To determine

To prepare: Journal entry for the stock options awarded on January 1, 2016

(3)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entry for compensation expense on December 31, 2016

(4)

To determine

To journalize: The entry for compensation expense on December 31, 2017

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 19, Problem 19.5E

(1)

To determine

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options

(2)

To determine

To prepare: Journal entry for the stock options awarded on January 1, 2016

(3)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entry for compensation expense on December 31, 2016

(4)

To determine

To journalize: The entry for compensation expense on December 31, 2017

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 19, Problem 19.5E

(1)

To determine

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options

(2)

To determine

To prepare: Journal entry for the stock options awarded on January 1, 2016

(3)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entry for compensation expense on December 31, 2016

(4)

To determine

To journalize: The entry for compensation expense on December 31, 2017

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 19, Problem 19.5E

(1)

To determine

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options

(2)

To determine

To prepare: Journal entry for the stock options awarded on January 1, 2016

(3)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entry for compensation expense on December 31, 2016

(4)

To determine

To journalize: The entry for compensation expense on December 31, 2017

Answer 6

Chapter 19, Problem 19.5E

(1)

To determine

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options

Answer 7

Chapter 19, Problem 19.5E

(1)

To determine

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options

Answer 8

(2)

To determine

To prepare: Journal entry for the stock options awarded on January 1, 2016

Answer 9

(2)

To determine

To prepare: Journal entry for the stock options awarded on January 1, 2016

Answer 10

(3)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entry for compensation expense on December 31, 2016

Answer 11

(3)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entry for compensation expense on December 31, 2016

Answer 12

(4)

To determine

To journalize: The entry for compensation expense on December 31, 2017

Answer 13

(4)

To determine

To journalize: The entry for compensation expense on December 31, 2017

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 19 - Prob. 19.1Q Ch. 19 - Prob. 19.2Q Ch. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6Q Ch. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9Q Ch. 19 - The treasury stock method is used to incorporate...

Stock options : Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period. To determine : The compensation cost of stock options

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period. To determine: The compensation cost of stock options

To prepare: Journal entry for the stock options awarded on January 1, 2016

To journalize: The entry for compensation expense on December 31, 2017

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Chapter 19 Solutions

Stock options: Stock options are the stock-based compensation plans provided in the form of an option to buy certain number of shares for a certain price during certain period.

To determine: The compensation cost of stock options