Beta Company reported the following in the equity section of its balance sheet on December 31,...

 

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Beta Company reported the following in the equity section of its balance sheet on December 31, 2019: Common shares, unlimited authorized, 100,000 shares issued $200,000 10,000 Contributed surplus: conversion rights Contributed surplus: 9,000 common share warrants outstanding, each warrant allowing the purchase of 2 common shares at $4 per share Contributed surplus: 15,000 stock options outstanding Retained earnings July 1 Total shareholders' equity Each of the 15,000 stock options outstanding to employees allows for the purchase of 1 common share for $6; the options were exercisable at various dates. The following transactions occurred during 2020: February 1 50% of the warrants outstanding at the beginning of the year were exercised in full. The market value of a share was $9. May 1 36,000 61,000 425,000 $732.000 Employees exercised outstanding stock options and 7.500 shares were issued. The market value of a share was $10. New stock options were granted to employees allowing the purchase of 20,000 shares at the current market price of $11. The rights are exercisable in 2 years. The fair value of the options was $40,000. November 1 The remaining warrants expired. Ⓒ Required: Prepare the journal entries for the above transactions including any necessary year-end adjusting entries. PERFE Beta Company reported the following in the equity section of its balance sheet on December 31, 2019: Common shares, unlimited authorized, 100,000 shares issued $200,000 10,000 Contributed surplus: conversion rights Contributed surplus: 9,000 common share warrants outstanding, each warrant allowing the purchase of 2 common shares at $4 per share Contributed surplus: 15,000 stock options outstanding Retained earnings July 1 Total shareholders' equity Each of the 15,000 stock options outstanding to employees allows for the purchase of 1 common share for $6; the options were exercisable at various dates. The following transactions occurred during 2020: February 1 50% of the warrants outstanding at the beginning of the year were exercised in full. The market value of a share was $9. May 1 36,000 61,000 425,000 $732.000 Employees exercised outstanding stock options and 7.500 shares were issued. The market value of a share was $10. New stock options were granted to employees allowing the purchase of 20,000 shares at the current market price of $11. The rights are exercisable in 2 years. The fair value of the options was $40,000. November 1 The remaining warrants expired. Ⓒ Required: Prepare the journal entries for the above transactions including any necessary year-end adjusting entries. PERFE

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February 1 Warrant expense 4500 Cash 8000 May 1 Share option... View the full answer