Prepare journal entries to record issuance of the stock, Ask an Expert

Accounting

On January 1, 2010 Magilla Inc granted stock options to officers and employees for the purchase of 20,000 shares of the company's $10 par common stock at $25 per share. The options were exercisable within a 5-yr period beg. 1/1/2012 by grantees still in company expiring 12/31/2016. The service period for this award is 2 yrs. Assume the value of option-pricing model to determine total compensation of expense to be $400,000

On april 1, 2011 - 3000 options were terminated when the employees resiged from the company. The market value of the common stock was $35 per share on this date.

On March 31, 2012 -- 12,000 options were exerceised when the market value of the common stock was $40 per share.

Prepare journal entries to record issuance of the stock options, termination of stock options, exercise of the stock option and the charges compensation expense for year ending 12/31/2010, 12/31/2011, 12/31/2012

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9447569

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - what is the difference between expensing assets

Question - What is the difference between expensing assets such as cement, tools, machinery, etc rather than depreciating certain items. How to correct this on the company's books if they have been expensing everything s ...

Question paper 01 ubs tax evasion paperprepare 500-750-word

Question: Paper 01: UBS Tax Evasion Paper Prepare 500-750-word paper in which you address the following: • Discuss the matter of 2008 UBS Tax Evasion charges. • Explain your understanding of their cause, the impact on th ...

Questions -1 discuss the importance of accurate product

Questions - 1. Discuss the importance of accurate product costing. In your discussion you should highlight the problems associated with using traditional costing system which Beztec has been using. 2. Calculate the cost ...

Question - journalize the transaction1 collected 25000 for

Question - Journalize the transaction 1. Collected $25,000 for services to be provided over the coming year on June 30. 2. Paid $72,000 for a three-year insurance policy on July 10 with coverage beginning on August 1. 3. ...

Question -how susceptible are you to undue influence to

Question - How susceptible are you to undue influence to alter records of transactions? Do you have the strength of your convictions to stand up to a rich and powerful CEO who orders you to change the records?

Question - donuts r us sells expensive donuts the companys

Question - Donuts R Us sells expensive donuts. The company's annual fixed costs re $54000. The sales price of a donut is $10, and it costs the company $6 to make each donut. Ignore income taxes for the following requirem ...

Question you are the instructor of a one-day tax seminar to

Question: You are the instructor of a one-day tax seminar to inform international students studying business in the United States about the current tax system. You are preparing a background report to help you prepare fo ...

Question - bonita corporation had january 1 and december 31

Question - Bonita Corporation had January 1 and December 31 balances as follows. 1/1/17 12/31/17 Inventory $90,000 $109,000 Accounts payable 53,000 62,000 For 2017, cost of goods sold was $441,000. Compute Bonita's 2017 ...

Question 1calculate total revenues and expenditures for

Question: 1. Calculate total revenues and expenditures for each year. 2. Calculate each revenue source and expenditure category as a percentage of the total budget for each year (for example, property tax for 2008 = 52,2 ...

Question - presented here are the original overhead budget

Question - Presented here are the original overhead budget and the actual costs incurred during April for Piccolo, Inc. Piccolo's managers relate overhead to direct labor hours for planning, control, and product costing ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert