User Account

All Pages

Prepare the journal entry to record the exercise

Assignment Help Accounting Basics
Reference no: EM133132248

Question - Suppose Norman Industries offered a stock option plan to its managers.  On January 1, 2018, options were granted for 40 million $1 par common shares.  The exercise price is the market price on the grant date--$8 per share.  Options cannot be exercised prior to January 1, 2021, and they expire December 31, 2024.  The fair value of the 40 million options, estimated using an appropriate option-pricing model is $3 per option.  Average market price of the stock is $10 per share during 2018-2020.

(a) Prepare the journal entry to record compensation expense at year-end 2018.

(b) Prepare the journal entry to record the exercise of 75% of the options on March 12, 2021 when the market price is $9 per share.

 

Reference no: EM133132248

Questions Cloud

What is the impact on her bottom line : 1. If Sue agrees to the $25.00 selling price for your order, what is the impact on her bottom line? Based strictly on the financial analysis, she accept order
Describe various types of management careers : Describe the various types of management careers that can be offered within each industry (lodging, and food and beverage).
What significant changes did the company experience : Last year, a firm operated with the following financial ratios: profit margin was 0.25, total asset turnover was 0.75, and equity multiplier was 1.20.
Estimate the expected inflation rate for the united states : Estimate the expected inflation rate for the United States from 2011 to 2020 and show your answer in the following table.
Prepare the journal entry to record the exercise : Prepare the journal entry to record the exercise of 75% of the options on March 12, 2021 when the market price is $9 per share
How would you advise jim on adopting eobrs : How would you advise Jim on adopting EOBRs? What would be your tactics to retain the current driver pool using the new technology?
Magnitude of scarcity for challenge in a essay : Using widely accepted indicator/definition discuss the level/ magnitude of scarcity for each challenge in a essay
What would be the percentage change in the price of bond sam : If rates were to suddenly fall by 2 percent Instead, what would be the percentage change in the price of Bond Sam and Bond Dave
Components of gdp : What components of GDP (if any) would each of the following transaction affect? Explain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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