Questions from Intermediate Accounting

Q: On November 1, 2011, Olympic Company adopted a stock-

On November 1, 2011, Olympic Company adopted a stock-option plan that granted options to key executives to purchase 40,000 shares of the company’s $10 par value common stock. The options were granted...

Q: On January 1, 2012, Magilla Inc. granted stock options

On January 1, 2012, Magilla Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company’s $10 par common stock at $25 per share. The options were exercisa...

Q: On January 1, 2011, Scooby Corporation granted 10,000

On January 1, 2011, Scooby Corporation granted 10,000 options to key executives. Each option allows the executive to purchase one share of Scooby’s $5 par value common stock at a price of $20 per shar...

Q: Derrick Company issues 4,000 shares of restricted stock to its

Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2012. The stock has a fair value of $120,000 on this date. The service period related to this restricted...

Q: Ravonette Corporation issued 300 shares of $10 par value common stock

Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market price of $20 per share, a...

Q: Tweedie Company issues 10,000 shares of restricted stock to its

Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2012. The stock has a fair value of $500,000 on this date. The service period related to this restricted...

Q: Gogean Inc. uses a calendar year for financial reporting. The

Gogean Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Gogean issued any potentially dilutive securities....

Q: On January 1, 2012, Chang Corp. had 480,

On January 1, 2012, Chang Corp. had 480,000 shares of common stock outstanding. During 2012, it had the following transactions that affected the Common Stock account. February 1 ……………………………. Issued 12...

Q: Ott Company had 210,000 shares of common stock outstanding on

Ott Company had 210,000 shares of common stock outstanding on December 31, 2012. During the year 2013, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For the year 20...

Q: Briefly explain the accounting requirements for stock compensation plans under GAAP.

Briefly explain the accounting requirements for stock compensation plans under GAAP.