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Week 6 Team Assignments - Week 6 Team Assignments EXERCISE...

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Week 6 Team Assignments EXERCISE 16-11 (15–25 minutes) 1/1/10 No entry (total compensation cost is $400,000) 12/31/10 Compensation Expense ..................................... 200,000 Paid-in Capital—Stock Options .............. 200,000 ($400,000 X 1/2) (To recognize compensation expense for 2010) 4/1/11 Paid-in Capital—Stock Options ......................... 30,000 Compensation Expense ($200,000 X 3,000/20,000) ..................... 30,000 (To record termination of stock options held by resigned employees) 12/31/11 Compensation Expense ..................................... 170,000 Paid-in Capital—Stock Options .............. 170,000 ($400,000 X 1 / 2 X 17 / 20 ) (To recognize compensation expense for 2011) 3/31/12 Cash (12,000 X $25) ............................................. 300,000 Paid-in Capital—Stock Options ($400,000 X 12,000/20,000) .............................. 240,000 Common Stock ......................................... 120,000 Paid-in Capital in Excess of Par ............. 420,000 (To record exercise of stock options) Note : There are 5,000 options unexercised as of 3/31/12 (20,000 – 3,000 – 12,000).
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EX 16-30 Schedule of Compensation Expense Stock Appreciation Rights Date Fair Value Cumulative Compensation Recognizable Percenta ge Accrued Compens ation Accrued to Date Expense 2009 Expense 2010 Expense 2011 Expe nse 2012 Expens 2013 2/31/ 9 $ 6 $240,000 25% $ 60,000 $60,000 120,000 $120,000 0 9 360,000 50% 180,000 270,000 $270,000 1 15 600,000 75% 450,000 (130,000 ) $(130, 000) 2 8 320,000 100% 320,000 400,000 $400,00 3 18 720,000 $720,000 (b) 2009 Compensation Expense ...................................................................................
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