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Kamila [148]
3 years ago
11

On December 30, 2014, Yang Corporation granted compensatory stock options for 5,000 shares of its $1 par value common stock to c

ertain of its key employees. The options may be exercised after 2 years of employment. Market price of the common stock on that date was $30 per share and the option price was $30 per share. Using a fair value option pricing model, total compensation expense is determined to be $80,000. The options are exercisable beginning January 1, 2017, providing those key employees are still in the employ of the company at the time the options are exercised. The options expire on January 1, 2018.
Required:
Prepare the following selected journal entries for the company

a. December 30, 2014.
b. December 31, 2015.
c. January 1, 2017, assuming 90% of the options were exercised at that date.
d. January 1, 2018, for the 10% of the options that expired
Business
1 answer:
grigory [225]3 years ago
7 0

Answer: See explanation

Explanation:

The selected journal entries for the company has been prepared and attached. Note that:

Cash on January 1, 2017 was calculated as: = (30 × 5000 × 90%)

= 30 × 5000 × 0.9

= $135000

Paid in capital - stock options was calculated as:

= (80000 × 90%)

= $80000 × 0.9

= $72000

Common stock was gotten as: (5000× 90% × 1)

= $5000 × 0.9 × 1

= $450

Check the attachment for further details

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A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin r
suter [353]

Answer:

1. A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin ratio equals:______

c. 28.0%.

2. The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

A. True

3. Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.

A. True

Explanation:

Gross profit margin is calculated by dividing the gross profit by the sales and multiplying by 100.  In this case, the gross profit is $212,800 ($760,200 - $547,400).  The amount, $212,800, then divided by $760,200 and multiplied by 100 to obtain approximately 28%.

The dollar is the monetary unit for all business transactions conducted in the United States.  The accounting assumption behind the monetary unit means that all transactions conducted in the United STates are reported in dollars.

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2 years ago
Suppose that, in an attempt to combat severe unemployment, the government decides to increase the amount of money in circulation
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Answer:

increases

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lower

lower

Explanation:

If the money supply is increased. individuals would have more money and consumption would increase. Increase in consumption would lead to a rise in demand.

when demand exceeds supply, prices rise,

When there is a rise in price, it encourages producers to increase production in order to increase their profit margin.

In order to expand production, more factors of production would be needed. So, more labour would be hired. thus, unemployment would fall.

it can be seen that higher inflation lowers unemployment

5 0
3 years ago
What are you paying for when you lease a car? A.the purchase price of the car
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Answer:

D

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3 years ago
Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisio
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Answer:

Effect on income= -$49,500

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Explanation:

Giving the following information:

Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,500.

Percy Division

Sales= $100,000

Cost of goods sold= 76,000

Gross profit= 24,000

Operating expenses= 49,500

Net income= (25,500)

In the Percy Division, the cost of goods sold is $59,000 variable and $17,000 fixed, and operating expenses are $29,000 variable and $20,500 fixed.

None of the Percy Division's fixed costs are avoidable.

Effect on income= -contribution margin - fixed costs

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They lost the positive contribution margin increased by the fixed costs.

4 0
3 years ago
Ocean City Kite Company sells kites for $11.50 per kite. In FY 2019, total fixed costs are expected to be $250,000 and variable
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Answer:

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And, the

Contribution Margin per Unit = Selling Price per Unit - Variable Cost per unit

= $11.50 - $3

= $8.50

So, the number of kits required is

= $340,000 ÷ $8.50

= 40,000 kits

8 0
3 years ago
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