Reference no: EM132876540
Question - Calvin Ltd. is a public corporation, and has a December 31 fiscal year-end. There are currently 500,000 issued and outstanding no par value common shares of Calvin Ltd. reflected in the share capital account.
On June 30, 2018, all common shareholders were issued one stock option for each common share presently held as part of a financial reorganization. Calvin Ltd. received consideration of $290,000 for the 500,000 stock options issued. Each option entitled the holder to subsequently acquire one common share of Calvin Ltd. for $25.
On August 15, 2018 Calvin Ltd. shares were trading on the stock exchange at $28 and 70% of the outstanding options were exercised. At October 15, 2018 Calvin Ltd. shares were trading at $22 and the remaining options lapsed.
On November 1, 2018 Calvin Ltd. decided to triple the number of common shares currently outstanding, and issued a three-for-one stock split.
On December 30, 2018 Calvin Ltd. declared a dividend sufficient to pay $2 per share to all common shareholders.
REQUIRED - Prepare Calvin Ltd.'s 2018 entries to record the above transactions.