Chp 16 Exercises and Problems Solutions

Chp 16 Exercises and Problems Solutions - EXERCISE 16-11...

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EXERCISE 16-11 (15–25 minutes) 1/1/08 No entry 12/31/08 Compensation Expense. .................................... 175,000 Paid-in Capital—Stock Options. ............. 175,000 ($350,000 X 1/2) (To recognize compensation expense for 2008) 4/1/09 Paid-in Capital—Stock Options. ........................ 17,500 Compensation Expense. ......................... 17,500 ($175,000 X 2,000/20,000) (To record termination of stock options held by resigned employees) 12/31/09 Compensation Expense. .................................... 157,500 Paid-in Capital—Stock Options. ............. 157,500 ($350,000 X 1 / 2 X 18 / 20 ) (To recognize compensation expense for 2009) 3/31/10 Cash (12,000 X $25). ............................................ 300,000 Paid-in Capital—Stock Options. ........................ 210,000 ($350,000 X 12,000/20,000) Common Stock. ........................................ 120,000 Paid-in Capital in Excess of Par. ............ 390,000 (To record exercise of stock options) Note: There are 6,000 options unexercised as of 3/31/10 (20,000 – 2,000 – 12,000).
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Chp 16 Exercises and Problems Solutions - EXERCISE 16-11...

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