User Account

All Pages

Provide the journal entry

Assignment Help Financial Accounting
Reference no: EM132966215

Question -

a. Cardinal Inc., which has a fiscal year end of December 31, granted 1,000 stock options to its CEO as a form of compensation on January 1, 20X1 (exercise price = $50). When the options were issued they had an intrinsic value of $0 and a fair value of $6,600; on December 31, the options had an intrinsic value of $1,900 and a fair value of $6,200. The options were issued with an expected benefit period (or vesting period) of 3 years. Provide the journal entry that for the compensation expense for fiscal 20X1.

b. Now suppose that on January 1, 20X4, once the options are vested, the CEO will exercise the options. Name the asset (not APIC) that Cardinal Inc. will debit when recording the journal entry for the exercising of the options.

Reference no: EM132966215

Questions Cloud

What is the before-tax cost of capital for this debt : The net proceeds (proceeds after flotation costs) are $979 for each $1,000 bond. What is the before-tax cost of capital for this debt financing
How many shares would lennox have : How many shares (rounded down to the whole share) would Lennox have? During the past five years, Lennox invested $2,250 each year into their employer company
What would be their capital gains from the investment : If Lennox sold their OPQ shares at $50 per shares, what would be their capital gains from their investment? During the past five years, Lennox invested $2,250.
Prepare any entries necessary to make the books correct : Checks outstanding on June 30 totaled $2,136.05. Prepare any entries necessary to make the books correct and complete
Provide the journal entry : The options were issued with an expected benefit period (or vesting period) of 3 years. Provide the journal entry that for the compensation expense
What is the breakeven price of position at expiration date : Without considering transaction costs, what is the breakeven price (stock price at which profit is zero) of this position at expiration date (in half a year)?
Prepare a bank reconciliation dated june : Receipts for June 30 for $3,390 were not deposited until July 2. Prepare a bank reconciliation dated June 30, 2020, proceeding to a correct cash balance
Tangible investment in a strategic relationship : Which of the following is best described by tangible investment in a strategic relationship?
Calculate the current tax expense for elvis limited : Calculate the current tax expense for Elvis Limited for the years ended 31 March 2019 and 2020. Tax rate for the two years is at 16%

Reviews

Write a Review

Financial Accounting Questions & Answers

  Is personal liability of the owners for any business debts

Personal liability of the owners for any business debts is an important consideration when selecting an appropriate form of business organization.

  Recorded them bond proceeds-account comparable to revenues

Geneva County authorized the issuance of bonds and contracted with the Chessie Construction Company (CCC) to build a new convention center. During 2013, 2014, and 2015, the county engaged in the transactions that follow. All were recorded in the coun..

  How can financial institutions with stock portfolios use

Leverage of Options- How can financial institutions with stock portfolios use stock options when they expect stock prices to rise substantially but do not yet have sufficient funds to purchase more stock?

  Problem - Inventory Costing Methods-Periodic Method

Problem - Inventory Costing Methods-Periodic Method - Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out

  Compute the amount of goodwill acquired by winans

On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont’s balance sheet showed assets of $620,000, liabilities of $200,000, and owners’ equity of $420,000. The fair value of..

  Prepare the necessary year-end adjusting entries for salary

How 2021 salaries expense and rent revenue will be the same, whether reversing entries are used or not. Prepare necessary year-end adjusting entries for salary

  Calculate the total interest that will be paid at maturity

Moon Inc. borrowed $100,000 from the bank by entering into a 9-month note at 4% interest dated March 1, 2019. Calculate the total interest

  What type of activity cash purchase reported in statement

Office equipment to better serve its customers. This cash purchase is reported in the statement of cash flows as what type of activity?

  Define the purchase of long-term growth funds such as stocks

Which aspect of financial planning deals with the purchase of long-term growth funds such as stocks

  Compare the costs incurred on each job

Quality Painters, Inc., uses a job cost system. As of January 1, 2014, its records showed the following inventory balances: Compare the costs incurred on each job, including the costs in beginning Work in Process Inventory and costs incurred during J..

  Adjusting entry to record an unrecorded receivable is made

What is the effect on account balances when an adjusting entry to record an unrecorded receivable is made?

  Prepare the journal entry pke will use to correct error

Ignoring income taxes, prepare the journal entry PKE will use to correct the error. (If no entry is required for a transaction/event, select)

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