Chapter13InClassExercises

Chapter13InClassExercises - In‐Class Exercises Exercise...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: In‐Class Exercises Exercise #1 Chapter 13 On January 23, 2012, Ajax Corporation reacquired 15,000 shares of its $1 par common stock that originally was issued at $15 per share. Ajax paid $35 per share for the reacquired stock. On July 12, 2013, Ajax sold 5,000 shares of the treasury stock for $38 per share. On November 4, 2013, they sold an additional 7,000 shares at $34 per share. Ajax sold the remaining 3,000 shares of treasury stock for $45 per share on February 29, 2016. Prepare the necessary journal entries using both the Cost and Par Value Methods. Exercise #2 Ajax Incorporated has 1,000,000 outstanding common shares with $1 par value. Prepare journal entries for the following events (if necessary) by Ajax Incorporated. January 1, 2010 Granted 24,000 employee stock options to key executives. The options vest on December 31, 2012, if the employees remain with Ajax through that date, and expire on December 31, 2013. The options have a strike price of $25 and an estimated value of $5 each. December 31, 2010 February 3, 2011 Adjusting entry related to stock option compensation. Ajax declared cash dividends of $0.45 per share and stock dividend of 5%. The stock price on this date was $31.50 per share. Ajax paid the cash dividends and distributed the stock dividend. Adjusting entry related to stock option compensation. Ajax declared cash dividends of $0.34 per share and a stock dividend of 2%. The stock price on this date was $36.72. Ajax paid the cash dividends and distributed the stock dividend. Adjusting entry related to stock option compensation. 23,000 options were exercised by employees. 1,000 options expired unexercised. March 1, 2011 December 31, 2011 February 3, 2012 March 1, 2012 December 31, 2012 January 3, 2013 December 31, 2013 ACCT 4050 Page 1 of 3 Chapter 13 ‐ In‐Class Exercises ...
View Full Document

This note was uploaded on 04/06/2011 for the course ACCT 4050 taught by Professor Rodney during the Spring '11 term at University of Georgia Athens.

Ask a homework question - tutors are online