On January 1, 2011, Paul Co. granted its CEO, Valerie Paul, 1,000 stock options with an exercise price of $30 per share as compensation. The options vest over four years and expire after 10 years. The stock price on the grant date was $30 and the fair value of the option grant was $10 per share. On December 31, 2012, Paul Co. recorded a journal entry related to this option grant. Which of the following items would be decreased by the December 31, 2012 journal entry? (check all that apply) Net Income Additional Paid in Capital Accumulated Other Comprehensiv Income Cash from Operating Activities Cash from Financing Activities
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- On 1 May 20X4 XYZ invests in 18456 call options for Fantasy Travel Limited shares. The options have an exercise price of $100 per share, and will expire on 30 April 20X6. Price premium for each option is $25. Fantasy Travel Limited's shares price on 1 May 20X4 is $132. The balance sheet date for XYZ Ltd is 30 June. XYZ Ltd accounts for its financial instruments using fair value through profit and loss. Other data: Date 30 June 20X4 30 June 20X5 30 April 20X6 Share Price 146 131 150 Option price 34 24 43 What is the value of the options at the time when XYZ Ltd exercises the options on 30 April 20X6? PLEASE ENTER YOUR ANSWER IN WHOLE NUMBERS WITH NO COMMAS OR DOLLAR SIGNS (EG $1,000,000 SHOULD BE SHOWN AS 1000000; -$1,000,000 SHOULD BE SHOWN AS -1000000).MCQ1 On November 1, Jeremiah Company ("IC") acquired the following investment which JC elected to account for using the OCI option under IFRS 9: • Lin Co. - 1,000 common shares at $30 per share. Brokerage fees to acquire the shares amounted to $500. JC's year-end is December 31. The quoted market price at December 31 was as follows: • Lin Co. = $32. If JC were to sell the investment at year-end, it would incur $600 of brokerage fees.On 1 May 20X4 XYZ invests in 106 call options for Fantasy Travel Limited shares. The options have an exercise price of $56 per share, and will expire on 30 April 20X6. Price for each option is $5. Fantasy Travel Limited's shares price on 1 May 20X4 is $64. The balance sheet date for XYZ Ltd is 30 June. XYZ Ltd accounts for its financial instruments using fair value through profit and loss. Other data: Date Share Price Option price 30 June 20X4 73 19 30 June 20X5 81 27 What is the value of the options on 30 June 20X5?
- On I January x1, Annie Bhd issued 25 million, 4% redeemable preference shares at RMl each redeemable at a premium of 18%, on 31 December x4. The effective interest rate is 8% and the interest rate is 31 December. The market price of the shares in years x1 to x4 is shown below: RM 31 December xl 31 December x2 1.06 1.10 31 December x3 112 31 December x4 118 Required: Discuss the accounting treatment where the preference shares are measured at amortised costQuestion 5 On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P400,000 P200,000 P80,000 P280,000Preference sharesOn 1 March 2020, NOL issued 3 million 4% redeemable preference shares of $1 each at par andaccounted for as an equity. NOL will redeem the preference shares on 1 March 2025 at $4,408,000.The effective interest rate associated with the preference shares is 8%. On 28 February 2021, NOLpaid stated rate preference share dividend for the year to its shareholders. Discuss how each of the above events should account for in the financial statement of NOL for theyear ended 28 February 2021 with reference to relevant HKFRSs
- VICWT Oncies Current Attempt in Progress Tamarisk Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $116,000. a. b. Prepare the journal entry for the issuance when the market price of the common shares is $168 each and market price of the preferred is $210 each. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $202 per share. (List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 1,225. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation a. Debit Credit#18In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par valueconvertible preference share capital. One preference share can be converted into threeordinary shares of Eden’s P30 par value at the option of the shareholder. In August 2020, all ofthe preference shares were converted into ordinary shares. The market value of the ordinaryshare on the date of conversion was P60 per share. What amount will be credited to sharepremium? 2,880,000 pls provide correct solution for the given answerProblem 1 (Adapted)On January 1, 2017, Gliezel company issued options to key employees to purchase 20,000 ordinary shares of P100 par value at P125 per share. On such date, the market value of ordinary share is P150 per share. The fair value of each share option is P30. These options are exercisable starting January 1, 2019 and expire one year after. Options covering 17,500 shares are exercised on January 15, 2019 and the remaining options expired. a. Compute compensation expense for the year 2017, 2018 and 2019.b. Prepare journal entries to record the compensation each year as well as the exercise and expiration of the share options
- Case 1On January 1, 2018, Darna company granted an employee an option to purchase 40,000 ordinary shares with P5 par value at P20 per share. The option became exercisable on December 31, 2019, after the employee completed two years of service. The fair value of the share option is P15. The option was exercised on January 15, 2020. The share prices are P30 on January 1, 2018, P50 on December 31, 2019, and P60 on January 15, 2020. What is the compensation expense for 2018? Prepare the journal entry to record compensation and the exercise of share options.Aa.36. Accounting for Call Options On January 2, Starz Inc. established an agreement with Silver Co. allowing Starz Inc. to call 100 shares of Gold Inc. stock at a strike price of $45 per share through June 30 of the following year. On January 2, the current market price of Gold Inc. is $45 and the option premium is $200. On June 30, the fair value of the option is $900. Required a. Prepare the journal entry on January 2 to record the purchase of the call option. b. Prepare the entry to adjust the call option to fair value on June 30. At what price per share of Gold Inc. will the call option become valuable to Starz Inc.?● Note: Round your answer to the nearest penny.Case Share-Based PaymentNexians Corporation awarded fixed options to 100 employees on 1 January 20x4 to acquire20,000 shares of the company. The fair value of the option was determined to be $1.20 usingthe Black-Scholes models and the exercise price was $3.50 per share (same as the market priceat 1 January 20x4).Other terms of the options are shown as follows:a. The share option expired five years after the date of the grant.b. The employees must remain employed until 31 December 20x6.c. The management estimated a forfeiture rate of 2%. This estimate was revised at the endof each year.d. In 20x4, three employees left the firm and the forfeiture rate was revised to 5% at 31December 20x4.e. In 20x5, another two employees left the firm and the forfeiture rate was maintained at5% at 31 December 20x5.f. In 20x6, three employees left the firm. Required:1. Calculate the remuneration expense relating to the share options for the following years20x4, 20x5 and 20x6.2. Prepare the journal entries…