78pershare numberofsharesissued averageissueprice

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Unformatted text preview: authorized, 152,000 shares issued, 132,000 shares outstanding, and 20,000 shares held as treasury stock) Additional paid­in capital (C/S) Retained earnings Treasury stock Total stockholders' equity $ $ 456,000 639,000 545,000 (100,000) 1,540,000 P12–8 a. 2007 Average price Dollar Amount / Shares = Exercised stock options $77,400 6,600 $ 11.73 Sale of common stock $ 14.96 41,900 Repurchase of stock $ 15.94 2,800 194,500 12,200 $313,800 21,600 $ 14.53 2008 Exercised stock options $ 35,900 $ 7.48 4,800 Sale of common stock $ 10.72 2,500 26,800 $62,700 7,300 $ 8.59 b. The common stock shares were issued at a higher price than the options. Stock options typically have a life of 5­10 years. So it is very likely that the stock options that were exercised this year were granted in previous years. If the stock price has risen over the last few years then the options would have been granted at lower prices in previous years. The trend in the stock price over from 2007 to 2008 has been down rather significantly. P12–9 a. (1 ) Treasury Stock (–SE) 1,000 Cash (–A) 1,000 Purchased treasury stock. (2 )...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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