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1 aOn January 1 , 2 0 X 1 , Fielding Company initiated an employee stock - based compensation plan that grants 8 0 ,

1aOn January 1,20X1, Fielding Company initiated an employee stock-based compensation plan that grants 80,000 stock appreciation rights (SARs) to employees on January 1,20X1, which will pay the exerciser of each cash SAR an amount equal to the excess of the share price on the exercise date over the $4 threshold price. Under the contract, the cash SARs fully vest and become exercisable on January 1,20X3 if the employees continue working for Fielding Company for that two-year service period. Fielding cannot elect to settle the award in stock. The cash SARs are exercisable any time between January 1,20X3 and December 31,20X3.* January 1,20X1 SAR value = $1.00 per SAR (based on option pricing formula)* December 31,20X1 SAR value = $2.80 per SAR (based on option pricing formula)* December 31,20X2 SAR value = $5.10 per SAR (based on option pricing formula)Which of ONE the following should be included in the journal entry necessary on the books of Fielding Company on December 31,20X2? Note: This is the end of the SECOND year.* DEBIT to Compensation Expense of $296,000* DEBIT to SAR Liability of $408,000* DEBIT to Compensation Expense of $408,000* DEBIT to SAR Liability of $296,0001b Eureka Company started business on January 1,20X1. For 20X1, Eureka reported a net loss of $30,000 and paid cash dividends of $75,000. Note: The incorporation laws in the state in which Eureka is incorporated allow payment of dividends even when net income and retained earnings are negative.The following occurred during 20X2:* Net LOSS for 20X2 was $80,000.* Cash dividends paid during 20X2 were $45,000.What is Eurekas Retained Earnings balance at the end of 20X2?* Negative (debit) $230,000* Negative (debit) $70,000* Positive (credit) $230,000* Positive (credit) $105,0001cMyton Company started business on January 1,20X1. Net income and dividends for the first three years of the companys existence are as follows:Net Income (Loss)Dividends20X1($1,000)$020X240010020X31,700300The company has some foreign subsidiaries and also maintains a portfolio of available-for-sale securities. During 20X1,20X2, and 20X3, the U.S. dollar value of the equity of the foreign subsidiaries and the market value of the securities in the available-for-sale portfolio fluctuated as follows.Change in U.S. dollar valueChange in Value of Portfolio20X1increase of $350decrease of $1,10020X2decrease of $800decrease of $60020X3decrease of $170increase of $420What is COMPREHENSIVE INCOME for 20X3(the THIRD year)? Note: This question is asking about comprehensive income, not about accumulated other comprehensive income or about other comprehensive income.* $800* $1,950* $1,700* $1,4001d Wanship Company started business on January 1,20X1. Net income and dividends for the first three years of the companys existence are as follows:Net Income (Loss)Dividends20X1($1,000)$020X240010020X31,700300The company has some foreign subsidiaries and also maintains a portfolio of available-for-sale securities. During 20X1,20X2, and 20X3, the U.S. dollar value of the equity of the foreign subsidiaries and the market value of the securities in the available-for-sale portfolio fluctuated as follows.Change in U.S. dollar valueChange in Value of Portfolio20X1increase of $350decrease of $1,10020X2decrease of $800decrease of $60020X3decrease of $170increase of $420What is ACCUMULATED OTHER COMPREHENSIVE INCOME as of the end of 20X3(the THIRD year)? Note: This question is asking about accumulated other comprehensive income, not about comprehensive income or about other comprehensive income.)* Negative $1,900* Negative $2,600* Negative $1,200* Positive $1,950

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