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Home / Questions / On June 1, 20x6, Will Oldman, treasurer of A-One Corporation, received an option to purcha

On June 1, 20x6, Will Oldman, treasurer of A-One Corporation, received an option to purcha

On June 1, 20x6, Will Oldman, treasurer of A-One Corporation, received an option to purchase 2,000 shares of A-One $5 par value common stock for $20 per share any time during 20x7 or 20x8. Oldman exercised his option on May 14, 20x7. The market price of the stock was $20 per share on June 1, 20x6, and $25 per share on May 14, 20x7. Provide the entry in journal form to record the exercise of the option on A-One's books. Show computations. (Omit explanation.)

 

General Journal

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172.Under what circumstances should compensation expense be recorded for a stock option plan?

 

 

173.Berman Corporation was organized during 20x7. In organizing, the company incurred the following costs:

 

1. Paid the state $900 for the corporate charter and related fees of incorporation.

2. Paid the attorney $2,500 for services rendered in connection with filing incorporation papers with the state.

3. Issued 500 shares of $5 par value common stock to an accountant in exchange for accounting services valued at $3,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepare the entries in journal form necessary to record the above transactions without explanations.

 

General Journal

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Date

Description

Post.

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Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 10 2019 View more View Less

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