Wolmore Resources Ltd. is authorized to issue unlimited numbers of common shares, of which 40,500,000 have been issued at anaverage price of $22 per share. On 1 January 20X3, when shares were trading for $30 per share, the company granted stock optionsto each of its 42 senior executives. The stock options provide that each individual will be eligible to purchase, no earlier than 31December 20X7, 3,000 common shares at a base option price of $30 per share. The options are nontransferable, vest on 31December 20X7, and expire on 31 December 20X8. Option pricing models indicate that the options have a total value of $480,000.Estimates of retention are:End of YearEmployees expected to remain until vestingEmployees expected to forfeitEmployees actually forfeiting in the yearEmployees actually receiving options (42 - 7)20X332 (76%)10 (24%)020X430 (71%)12 (29%)520X535 (83%)7 (17%)220X634 (81%)8 (19%)020X7n/an/a035Twenty-five individuals who received the options exercised on 31 December 20X7, when the share price was $54. The remainingindividuals did not exercise the options. The share price fell to $24 in 20X8, and the remaining options lapsed.Required: 1. Prepare the entries to record the granting of the options, annual expense, exercise, and lapse. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field. Do not round your intermediate values. Round yourfinal answers to the nearest whole dollar. Use the rounded % in the table except for 20X7. Use the exact calculation in 20X7.)View transaction listRecord the entry for annual compensation expense.Record the entry for annual compensation expense.Record the entry for annual compensation expense.4 Record the entry for annual compensation expense.Record the entry for annual compensation expense.Record the entry for exercising the stock options.Record the entry for lapse the stock options.123567XCredit

To properly account for stock options, we need to make entries at various stages: granting of…

1. Prepare the entries to record the granting of the options, annual expense, exercise, and lapse. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate values. Round your final answers to the nearest whole dollar. Use the rounded % in the table except for 20X7. Use the exact calculation in 20X7.)

1. Prepare the entries to record the granting of the options, annual expense, exercise, and lapse. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate values. Round your final answers to the nearest whole dollar. Use the rounded % in the table except for 20X7. Use the exact calculation in 20X7.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It is also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
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.
Spring Company is authorized to issue 500,000 shares of $2 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.
Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
James 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.
EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 6% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Journalize the transactions.
Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
Autumn Corporation was organized in August. It is authorized to issue 100,000 shares of $100 par value 7% preferred stock. It is also authorized to issue 500,000 shares of $5 par value common stock. During the year, the corporation had the following transactions: Journalize the transactions.
Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
The Nonono Corporation is authorized to issue 100,000 ordinary shares, P17 par value. At the beginning of 2021, 18,000 ordinary shares were issued and outstanding. These shares had been issued at P24. During 2021, the company entered into the following transactions:Jan. 16 Issued 1,300 ordinary shares at P25 per share.Mar. 21 Exchanged 12,000 ordinary shares for a building. The shares were selling at P27 per share.May 7 Reacquired 500 ordinary shares at P26 per share to be held in treasury.July 1 Accepted subscriptions to 1,000 ordinary shares at P28 per share. The contract called for 10% down payment with the balance due on December 1.Sep. 20 Sold 500 treasury shares at P29 per share.Dec. 1 Collected the balance due on the July 1 subscriptions and issued the shares. 1. What is the total share premium as of December 31, 2021? 2. The total contributed capital on December 31, 2021 is 3. The total legal capital on December 31, 2021 is: