ACT3392SpringTraditionalHWChs16&17solution

ACT3392SpringTraditionalHWChs16&17solution -...

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HOMEWORK - SPRING 2010 - 1. (1 point) Raycroft Corporation Preferred stock $100,000 Additional paid-in capital – preferred 25,000 Common stock $ 2,000 Additional paid-in capital 123,000 2. (3 points) Mecklin Service Corporation (a) Prepare the journal entries if these are these stock options. January 1, 2010 None necessary December 31, 2010 Compensation expense $110,000 Paid-in capital – stock options $110,000 December 31, 2011 Compensation expense $110,000 Paid-in capital – stock options $110,000 (b) Prepare the journal entries if Mecklin issued 10,000 shares of restricted stock January 1, 2010 Unearned compensation $400,000 Common stock $ 10,000 Additional paid-in capital 390,000 December 31, 2010 Compensation expense $100,000 Unearned compensation $100,000 December 31, 2011 Compensation expense $100,000 Unearned compensation $100,000 3. (2 points) Jancosek Corporation Proceeds from assumed exercise of stock options: 20,000 x $25 = $500,000 Shares issued upon assumed exercise: 20,000 Treasury shares that could be purchased with the proceeds: 12,500 ($500,000 / $40) Additional shares outstanding 7,500 Diluted EPS = $460,000 / (222,500 + 7,500) = $2.00
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This note was uploaded on 02/21/2011 for the course ACCT 3392 taught by Professor Dr.terpin during the Spring '10 term at Troy.

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ACT3392SpringTraditionalHWChs16&17solution -...

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