Each option entitles the holder to purchase one share

Assignment Help Accounting Basics
Reference no: EM131107335

1. On January 1, 2010, Bar wood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Bar wood's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Bar wood's journal entries for January 1, 2010, and December 31, 2010 and 2011 

Reference no: EM131107335

Questions Cloud

What is the relationship between the firm : What is the relationship between the firm's target capital structure and the weighted average cost of capital (WACC)?
Refer to the data for bar wood corporation : Refer to the data for bar Wood Corporation in BE16-6. Repeat the requirements assuming that instead of options, bar wood granted 2,000 shares of restricted stock.
What is the weighted average cost of capital : What is the weighted average cost of capital (WACC), and how is it calculated?
Why is the cost of financing a project with retained earning : Why is the cost of financing a project with retained earnings less than the cost of financing it with a new issue of common stock?
Each option entitles the holder to purchase one share : On January 1, 2010, Bar wood Corporation granted 5,000 options to executives.
How do the constant growth valuation model : How do the constant-growth valuation model and capital asset pricing model methods for finding the cost of common stock differ?
What premise about share value underlies : What premise about share value underlies the constant-growth valuation (Gordon growth) model that is used to measure the cost of common stock equity, rs?
The market price of the warrants without the bonds : The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.
How would you calculate the cost of preferred stock? : How would you calculate the cost of preferred stock?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Analyzing and preparing adjusting entries

Analyzing and preparing adjusting entries

  The alpha division of the xyz company manufactures product

the alpha division of the xyz company manufactures product x at a variable cost of 40 per unit. alpha divisions fixed

  A company is considering the purchase of a new machine for

a company is considering the purchase of a new machine for 128000. management predicts that the machine can produce

  The cash account balance was 38750 during june cash

on june 1 the cash account balance was 38750. during june cash payments totaled 239140 and the june 30 balance was

  Determine the total deductions in calculating taxable income

Determine the total deductions in calculating taxable income related to the machine for 2011 assuming Glory has taxable income of $500,000.

  Sera corporation has made and recorded

A portion of this additional expense, $ 6,000, is deferred for payment in future years. Record Sera's year end adjusting entry for income tax expense.

  Dreary days inc sells raincoats at a selling price of 2500

dreary days inc. sells raincoats at a selling price of 25.00 for each raincoat. the variable cost per raincoat is

  Presented is information related to rogers co for the month

presented is information related to rogers co. for the month of january 2011.ending inventory per perpetual

  Every time i open a new worksheet or a previously saved

is there a way to permanently change the page layout to fit to page on excel 2011 mac?recently switched fromm pc to

  Expected value of information

Jeffrey Mogul is a Hollywood film producer and he is currently evaluating a script by new screenwriter and director, Betty Jo Thurston. Jeffrey knows that the probability of a film by a new director being a success is about .10 and the probability..

  Cardinals corporation purchased a computer on december 31

cardinals corporation purchased a computer on december 31 2013 for 274365 paying 78390 down and agreeing to pay the

  Determining the cost of debt and equity

The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital. Nevertheless, the guidelines failed to fully demonstrate the essence of the cost of debt and..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd