On January 1, 2010, Sorvino Corp. granted stock options to its chief executive officer. This is the
Question:
On January 1, 2015, 4,000 of the options were exercised when the market price of the common shares was $78. The remaining stock options were allowed to expire. The CEO remained with the company throughout the period.
Instructions
Record the journal entries at the following dates. Assume that the entity follows PE GAAP and has decided not to include an estimate of forfeitures upon initial recognition of the compensation expense.
(a) January 1, 2010
(b) December 31, 2010, the fiscal year end of Sorvino Inc.
(c) January 1, 2015the exercise date
(d) December 31, 2017the expiry date of the options
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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