What is the entry to record the compensation expense in 2018 and the entry to record upon exercise?
Q: 2. The balance sheet for Putnam Corporation at the end of the current year include the following:…
A: Ratio analysis is one of the important technique used in management accounting. Times interest…
Q: Please select THREE of the ratios listed below and perform them for years 2012 and 2011. Please…
A: Comment - Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: deter another Madoff fraud. -) Investors, the auditor, feeder funds, the Financial Industry…
A: Audit refers to a process of examining the various books of accounts that are being followed by…
Q: Helen Hernandez, president of Double H Enterprises, applied for a $175,000 loan from Great Nations…
A: Banks required many types of statements before granting the loans and its quite necessary to assess…
Q: Cost of Goods Manufactured and Income Statement with Predetermined Overhead and Labor Cost…
A: In order to determine the net income, all the expenses (direct as well as indirect) are required to…
Q: b. Prepare the journal entry to record the acquisition if it is an asset acquisition. Assume the…
A: The asset acquisition and the business combination are two types of the methods that ar used in the…
Q: Cleveland's managers have determined that the following changes will impact their current…
A: Contribution Margin Income Statement separates the fixed and variable costs. Firstly it reaches at…
Q: LO.2 On January 1, 2020, Kunto, a cash basis taxpayer, pays $46,228 181 to yield 4% (the effective…
A: Gross Income Wages, dividends, capital gains, company revenue, retirement distributions, and other…
Q: Which of the following statements about Materiality is (are) true? I. Materiality depends on the…
A: The term "materiality" in accounting refers to the effect of the factual error or omission that will…
Q: The Simmons Company finished their sales projections for the coming year. The company produces one…
A: Overhead budget is the one which is prepared to determine all the costs relating to the…
Q: A company is considering buying a part that they currently make for one of their products. The costs…
A: Introduction: Direct materials are the resources and materials used in the production of a product…
Q: Tamil Traders LTD was extendend credit terms of 2/10 net 70. thw cost of giving up the cash…
A: Cash Discount Cash discounts are incentives or discounts that sellers give to buyers in accordance…
Q: Monroe Company rents and sells electronic equipment. During September, Monroe engaged in the…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and…
A: The question is based on the concept of Cost Accounting.
Q: Based on the foregoing facts, how much total current assets should be reported on the statement of…
A: Answer - Current Assets - A current asset is an item that get easily converted into cash on an…
Q: P2.5A (LO 1, 2, 3, 4) The Starr Theater, owned by Meg Vargo, will begin operations in March. The…
A: Journal entries is a record of business transactions. It is prepared to keep a report of daily…
Q: An industrial plant bought a generator set for P98,591.00. Other expenses including installation…
A: Depreciation expense is the non-cash expense which is reported in the income statement. It is…
Q: 3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet…
A: Hi Dear, As per the honor code of Bartleby we are bound to give the answer of first three sub part…
Q: Wright reported the following balances in their PP&E accounts: Equipment Accumulated Depreciation…
A: Depreciation on the asset is the expense which is computed to report the regular wear and tear on…
Q: Forest Company has five products in its inventory. Information abo follows. Product Quantity Cost $…
A: Inventory is one of important current asset being held by the business. Inventory valuation is also…
Q: ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following…
A: At the time of acquisition, the accounting approach requires everything to be accounted at Fair…
Q: Using the compound interest formula, verify the impact of the 2% commission rate identified in this…
A: The question emphasizes the impact of compounding over different horizons. It's a simple time value…
Q: The financial condition of two companies Assets = Liabilities + $ 11,000 = $ 7,590 + $ 12,724 = $…
A: Generally dividends are paid out of accumulated profits earned by a company.Accumulated profits…
Q: Accounting Victoria Ltd purchased from Albert Ltd the following parcel of assets and liabilities…
A: Golden rules of Accounting: Accounts Type Debit Credit Personal Accounts the receiver the giver…
Q: Requirement 1. Prepare journal entries dated June 30 to record: raw materials purchases, direct…
A: Journal Entry :— Journal Entry is the Process of Recording Financial and Non financial Transactions…
Q: Why do firms not have sunk costs over time? How should managers approach sunk costs when deciding…
A: Money that has been spent and cannot be recouped is referred to as a sunk cost. The concept of sunk…
Q: sophisticated equity method.
A: the correct option is option (d) that is sophisticated equity method.
Q: On November 20, 20X5, Diamond Corporation, a calendar-year US corporation, had merchandise delivered…
A: A Foreign Exchange transaction means a sale and purchase transaction is done between two parties in…
Q: ded Required: 1. Indicate any amounts that Mills Corp. would have included in its March 2022…
A: It is the case of Put Option, where the holder purchases the option at a price and their is the…
Q: What are some examples on the types of costs that the accounting systems might not record but…
A: following are the types of costs that are not recorded in the accounting system but companies do…
Q: Atlantis Company, on March 1, 2021 has a beginning Work in Process zero. All materials are added…
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
Q: . Decrease beverage costs to 20% Decrease payroll costs to 32% (but benefit costs will increase by…
A: Budgeted Profit A business's budgeted profit calculation serves as a forecast of its financial…
Q: Required: a. What earnings strategy do you think Emerson has applied over the years to maintain its…
A: Answer:- Earnings management meaning:- The practice of managing earnings is using accounting…
Q: How long will it take money to double itself if invested at 10% compounded annually? O a. 7.72 YEARS…
A: Solution: Let it will take n years to take money to double at 10% compounded annually Given interest…
Q: In November 2024, the Brunswick Company signed two purchase commitments. The commitment requires…
A:
Q: Use the formatted answer sheet template provided to analyze the effects of each of transaction on…
A: Bonds refer to investment securities where an investor lends money to a company or a government for…
Q: Problem 3 (Adapted) Shalom corporation’s current balance sheet reports the following shareholder’s…
A: Book value per share is determined by dividing the net value of assets by the number of outstanding…
Q: In 2022, Blair Corporation paid its CEO base compensation of $700,000 and a performance bonus of…
A: A performance bonus is defined as a monetary collection received by an employee when a certain…
Q: Anna company presented the following account balances in the shareholders’ equity section for the…
A: Preference share is preferred as to assets when Preference shares are shares of a company's stock…
Q: Inventory records for Dunbar Incorporated revealed the following: Date Transaction Apr. 1 Apr. 20…
A: Introduction: Ending inventory is the value of goods still offered for purchase and held by a…
Q: On April 1, Year 1, Maine Corporation paid $9,400 cash in advance for a one-year lease on an office…
A: Adjusting entries are those journal entries which are passed at the end of accounting period for…
Q: In your audit of the Gamer Inc., the client provided you the details of the Trade Accounts…
A: According to the given question, we need to compute the balance of the trade and accounts receivable…
Q: Transaction #1 (May 4, 2019) - the hospital signed a purchase order for a $2,500 supply purchase,…
A: In transaction 1 which occurred on May 4, 2019, a purchase order has been signed by the hospital for…
Q: Your client, Barney Green, and his wife, Edith, attended a two-day conference in Maui related to…
A: The Internal Revenue Code (IRC) is the tax law used at the federal level by the United States…
Q: Comprehensive Problem The following were taken from the books of Amihan Company: Long-term Payable…
A: A balance sheet is a statement of the financial condition of companies, corporations, and sole…
Q: In the audit of Zhongli Inc. you have performed cutoff test, the results of the audit procedure you…
A: Consignment Accounting - This is the innovative way to selling the goods through a third party named…
Q: Abba, Inc is considering the purchase of some new equipment that costs $191100. The new equipment is…
A: Accounting rate of return is the measure that helps in determining rate of return that an entity…
Q: On January 1, 20X1 Red Company acquired a building for P10M. The entity paid P1M down and signed a…
A: Notes payable is the long-term liability for the company which arises from borrowing from financial…
Q: mount of total assets, liabilities, and stockholders' equity Stockholders' Equity : = Liabilities +…
A: Stakeholder equity refers to the amount of equity that the company owners have invested in the…
Q: Each of the four independent situations below describes a sales-type lease in which annual lease…
A: An asset is transferred from the seller to the buyer in a sale and leaseback deal, after which the…
Case 2
On January 1, 2018, Olaf company granted share options to key employees to
supplement their compensation. The options given were 200,000 ordinary shares of
P10 par value at an option price of P15 per share. The market price of this share on
January 1, 2018 was P20. The fair value of each share option on January 1, 2018 is
P8. The options were exercisable beginning January 1, 2018 and expire on December
31, 2020. On December 31, 2018, all share options were exercised. What is the entry
to record the compensation expense in 2018 and the entry to record upon exercise?
Step by step
Solved in 2 steps
- Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of 100 par preferred stock at 104 per share and 9,000 shares of 110-par, no-stated-value common stock for 22 per sl1are. The subscription contracts require a 10% down payment, with the balance due by November 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remaining balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stockRestricted Share Units On January 2, 2019, Dekker Company grants each of its 15 new employees 200 restricted share units. Each of the time-vested restricted share units entitles the employee to receive one share of Dekker common stock if they remain an employee of the company for 2 years. On January 2, 2019, shares of Dekkers 2 par value common are trading at 52 per share. Dekker estimates that 12 of the 15 employees will complete 2 years of service with the company. At the end of 2020, Dekker reported that four employees left the company before completing the service period. Required: 1. Prepare a schedule of Dekker s computations for its restricted share unit plan for 2019 and 2020 (round all computations to the nearest dollar). 2. Prepare all journal entries for the restricted share unit plan for 2019 and 2020.Convertible Preferred Stock On January 2, 2019, Bray Corporation issues 900 shares of 100 par convertible preferred stock for 117 per share. On January 7, 2020, all the preferred shareholders convert their shares to common stock. Required: 1. Prepare the January 2, 2019, journal entry to record the issuance of the preferred stock. 2. Prepare the January 7, 2020, journal entry to record the conversion, assuming the preferred stock contract states that: a. each share of preferred stock is convertible into 7 shares of 10 par common stock b. each share of preferred stock is convertible into 12 shares of 10 par common stock
- On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is 15.75. Phoenix expects a turnover rate of 15% over the 3-year service period. Determine the compensation expense for 2019 for this plan.Trading Securities Pear Investments began operations in 2020 and invests in securities classified as trading securities. During 2020, it entered into the following trading security transactions: Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2020, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share. Required: 1. Prepare the necessary adjusting entry to value the trading securities at fair market value. 2. CONCEPTUAL CONNECTION What is the income statement effect of this adjusting entry?Case 1On January 1, 2018, Darna company granted an employee an option to purchase 40,000 ordinary shares with P5 par value at P20 per share. The option became exercisable on December 31, 2019, after the employee completed two years of service. The fair value of the share option is P15. The option was exercised on January 15, 2020. The share prices are P30 on January 1, 2018, P50 on December 31, 2019, and P60 on January 15, 2020. What is the compensation expense for 2018? Prepare the journal entry to record compensation and the exercise of share options.
- Problem 1 (Adapted)On January 1, 2017, Gliezel company issued options to key employees to purchase 20,000 ordinary shares of P100 par value at P125 per share. On such date, the market value of ordinary share is P150 per share. The fair value of each share option is P30. These options are exercisable starting January 1, 2019 and expire one year after. Options covering 17,500 shares are exercised on January 15, 2019 and the remaining options expired. a. Compute compensation expense for the year 2017, 2018 and 2019.b. Prepare journal entries to record the compensation each year as well as the exercise and expiration of the share options2. ABC Corporation (a public company) establishes an employee stock option plan on January 1, year 1. The plan allows its employees to acquire 10,000 shares of its P1 par value common stock at P52 per share, when the market price is also P52. The options may not be exercised until five years from the grant date. The grant-date fair value of an option with similar terms and conditions is P8.62. Compensation expense at the end of year 1 is Answer:7. On January 1, 2021, WASP Company granted 10,000 share options to each of its 5 managers. The options vest on January 1, 2025. During this date, the fair value of each share option is ₱50 and it is anticipated that all of the share options will vest on January 1, 2025. How much will be credited to share options outstanding for the year ended December 31, 2021? * ₱ 625,000 ₱ 2,500,000 ₱ 833,333 ₱ 125,000
