On January 1, 2025, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to
Question:
On January 1, 2025, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Barwood’s journal entries for January 1, 2025, and December 31, 2025 and 2026.
Step by Step Answer:
No entry 1125 123125 Compensat...View the full answer
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study accounting for...
-
On January 1, 2019, Barwood Ltd. granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood's 5 par value ordinary shares at 50 per share at any time during...
-
On January 1, 2007 Pierce Company establishes a performance based share option plan for its 80 top executives. The terms of the plan are that each executive is granted a maximum of 200 options after...
-
If a large chilled water plant has 6 chillers and 5 of them are operating at 1 0 0 % , when the operator starts the 6 th chiller, to what percent do the first 5 chillers unload? What formula do you...
-
At March 31, Ronca Company has the following information available about its cash account: Cash balance per bank ........ $7,500 Outstanding checks ......... $2,500 Deposits in transit ...........
-
Fortune publishes data on sales, profits, assets, stockholders' equity, market value, and earnings per share for the 500 largest U.S. industrial corporations (Fortune 500, 2012). Assume that you want...
-
On February 16, 2005, Joseph and Margaret Buset borrowed $192,000 from Fremont Investment & Loan (the Originator). The loan was secured by a mortgage on a residential condominium. The mortgage named...
-
Java manufactures coffee mugs that it sells to other companies for customizing with their own logos. Java prepares flexible budgets and uses a standard cost system to control manufacturing costs. The...
-
what are the benefits of the relational model relationships and ERD ( entity-relationship model)?
-
Carrie DLake, Reed A. Green, and Doug A. Divot share a passion for golf and decide to go into the golf club manufacturing business together. On January 2, 2020, DLake, Green, and Divot form the...
-
Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2025. On May 1, 2025, Douglas issued 60,000 shares. On July 1, Douglas purchased 10,000 treasury shares, which were reissued...
-
Dumars Corporation reports in the current liability section of its balance sheet at December 31, 2025 (its year-end), short-term obligations of $15,000,000, which includes the current portion of 12%...
-
The Organisation for Economic Co-operation and Development (OECD) monitors math, reading, and science performance of high school students in 64 countries using standardized scores. The scores for 10...
-
You were recently hired to calculate a firm's WACC. The firm's capital structure is 40% debt, 45% common stock, and 15% preferred stock. The After-tax cost of debt is 3.5%, the cost of preferred...
-
Find the (real) eigenvalues and eigenvectors of the following matrices: 1 0 [5 11 a. A = [] - 1 - Check if V = [] is an eigenvalue for A = eigenvectors. b. B = 3 = [o 51 [2] without finding the...
-
Consider the following swap. Party A will pay after 6 months (182 days) a fixed rate 7.50 percent per annum on a semiannual basis, and receives from Party B LIBOR + 40 basis points. The current...
-
Simpson Ltd is a small IT company, which has 2 million shares outstanding and a share price of $20 per share. The management of Simpson plans to increase debt and suggests it will generate $3 million...
-
How does Postcolonial Theory contribute to other critical approaches like Psychoanalytic Theory and New Historicism?
-
Many homeowners rely on handymen to perform small jobs, such as repairs or maintenance, around their residence. According to HomeAdvisor Inc., the average cost for a handyman project is $ 460. Assume...
-
When is the indirect pattern appropriate, and what are the benefits of using it?
-
Saltworks Inc. (SI) produces salt. Its main assets are two pieces of property that have two salt mines in them (mine 1 and mine 2). Both mines are currently in production. The salt exists in a...
-
Access the financial statements of Saskatoon-based PotashCorp., a global fertilizer producer, from the companys website or SEDAR (www.sedar.com) for the year ended December 31, 2009. Instructions (a)...
-
Access the annual report of Canadian Tire Corporation for the year ended January 2, 2010 (2009 annual report), from the companys website or SEDAR (www.sedar.com). According to the annual report, the...
-
A software provider buys blank Bluray DVDs at $ 5 5 0 per hundred and currently uses 2 million DVDs per year. The manager believes that it may be cheaper to make the DVDs rather than buy them. Direct...
-
Compare and contrast staff culture, patient culture, and organization culture? Apply the concept of organizational culture to health care organization? Apply strategies rhat may be used to improve an...
-
Renee is designing the long-term security plan for her organization and has a three- to five-year planning horizon. Her primary goal is to align the security function with the broader plans and...
Study smarter with the SolutionInn App