Fall 2010 Class 4

Cash cash contributed surplusstock options common

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Unformatted text preview: ons Shareholders’ Equity Accounting for ESOP­Example Accounting for ESOP­Example Fanco Ltd. set up an ESOP under which Fanco employees may purchase company share for $10 per share, The option premium is $1 per share, and Fanco has set aside 10,000 shares. On Jan 1, 2004, employees purchase 6000 options for $6000. Cash Cash Contributed Surplus—Stock Options 6000 6000 Accounting for ESOP­Example Accounting for ESOP­Example • Subsequently, all 6000 options are exercised, Subsequently, resulting in 60...
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