16 additional practice answer

16 additional practice answer - Stock Compensation Options...

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Stock Compensation Options Grant date fv / share $9 # Shares 35,000 Total comp expense $315,000 Vesting years 4 Comp expense per year $78,750 Total expense for 2009 $78,750 Full 12 months expense in calendar year 2009 Entries for 2011: Inc (Dec) in Equity Compensation expense 78,750 (78,750) PIC - Stock options 78,750 78,750 2011 expense for options recorded at 12/31/11 Total -
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Exercise on 6/1/10 of stock options DR CR 6/1/2010 Cash 9,000,000 (300,000*30) Paid-in capital - stock options 3,000,000 (300,000*10) Common stock 300,000 (300,000*1) APIC 11,700,000 (300,000*(10+30-1)) Equity increased by 9,000,000 sum of above equity entries, or exercise proceeds of 300,000 * 30 Expiration on 12/1/15 DR CR 12/1/2015 Paid-in capital - stock options 4,500,000 450000*10 Paid-in capital - expired options 4,500,000 Equity increased (decreased) by -
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Convertible Bonds Bonds payable 5,000,000 Discount on bonds payable 83,184 Common stock 125,000 5000*25*1 APIC 4,791,816 Equity increased by "book value" of exchanged bond 4,916,816 5000000-83184 Bonds w/o warrants 5,827,700 given
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