Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 19, Problem 19.1E
To determine
To prepare: The
Giveninformation:
Number of shares as an option is100,000.
Par value of common stock is $1.20.
Exercise price per share is $4.80.
Total option time period is 5 years.
Estimated fair value at the grant date is $850,000
Initial vesting probability is 100%.
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On July 1, 2020, Phoenix company offers to issue their accountant 800 common shares at their current market value of $12 per share, to equal the fair value of $9,600. The accountant accepts the offer of shares in exchange for accounting services. Record the journal entry for the issuance of shares.
Select one:
a. Debit Cash $9,600, Credit Common Shares $9,600
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Tl1e shareholders’ equity section of Gaines industries’s balance sheet appeared as follows at December 31, 2018:
During 2019, the following chronological transactions were recorded:1. Gaincs issued 1,000 shares of common stock for $40 per share.2. Gaines has a share option plan for key executives. In accordance with the plan, the shares under option and the option price per sharc for cach executive are known on the grant date. During 2019, no new options weregranted, and compensation expense of $3,000 was recorded in regard to the existing options3. Share options to 500 common shares were exercised in 2019 at an option price of $30 per share. The share option value originally recorded in the Common Stock Option Warrants account in regard to these sharesamounted to $3 per share.4. Gaines reissued 200 shares of its treasury stock for $41 per share.5. Gaines accepted land in an industrial park for a factory building site from the Columbus Development Association. The fair value of the…
Native Corp. reports the following transactions for 2020:
1 (Click the icon to view the transactions.)
Required. Prepare journal entries for the transactions. Explanations are not required.
Transactions
January 27: Sold 22,000 common shares for $5 per share.
Journal Entry
Jan. 27
Sold 22,000 common shares for $5 per share.
Date
Accounts
Debit
Credit
Feb. 1
Sold 8,500 shares of $1.00, noncumulative, preferred shares for $75
Jan.
27
per share.
Oct. 13
Declared a 10 percent stock dividend on the common shares. The
current market price of the common shares is $7 per share. There are
87,000 common shares outstanding on October 13.
2020
Nov. 16
Distributed the stock dividend declared on October 13.
Dec. 11
Declared the annual dividend required on the preferred shares and a
$0.45 per share dividend on the common shares. There are 12,000
preferred shares outstanding at this time.
February 1: Sold 6,500 shares of $1.00, noncumulative, preferred shares for $75 per share.
Journal Entry
Date…
Chapter 19 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
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. 19.12BECh. 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. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 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. 1FSCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
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