Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2021-2023. At December 31, 2020, the corporation's

please help
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included Common stock, 107 million shares at $1 par Paid-in capital-excess of par Retained earnings (5 in thousands) $107.000 642,000 860, eee V a. November 1, 2021. the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 15, to be paid December 1 b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.2 million, but were purchased two years previously for $1.9 million Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5. c on July 12, 2022, the corporation declared and distributed a 6% common stock dividend (when the market value of the common stock was $14 per share) Cash was paid in lieu of fractional shares representing 420,000 equivalent whole shares. d. On November 1, 2022, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 15, to be paid December 1, e. On January 15, 2023, the board of directors declared and distributed a 3.for 2 stock split effected in the form of a 50% stock dividend when the market value of the common stock was $15 per share On November 1, 2023, the board of directors declared a cash dividend of $0.65 per share on its common shares, payable to shareholders of record November 15, to be paid December 1, On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 18 million stock options were granted, exercisable for 18 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 80% of the quoted market price on January 1, 2021. which was $15. The fair value of the 18 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize forfeitures only when they occur Ten percent (1.8 millions of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stock's price jumped unexpectedly to $37 per share Required: 1. When is Ensor's stock option measurement date? 2. Determine the compensation expense for the stock option plan in 2021 (Ignore taxes) 3. Prepare the journal entries to reflect the effect of forfeiture of the stock options on Ensor's financial statements for 2022 and 2023 5. Prepare the journal entry to account for the exercise of the options in 2025 Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 and 5 When is Ensor's stock option measurement date? Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.) (Enter your answer in millions (.e., 10,000,000 should be entered as 10).) 1. Stock option date 2. Compensation expense million S Reglanda Req 3 and 5 > Chec Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Susan Hamlen

5th Edition

1618534246, 9781618534248

More Books

Students also viewed these Accounting questions

Question

Do you have little trouble staying up past midnight? Yes No

Answered: 1 week ago