Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

These questions are most likely asking about the methods of zero value approach and residual approach with the accounts being contributed surplus and so on

These questions are most likely asking about the methods of zero value approach and residual approach with the accounts being contributed surplus and so on.
On January 1,2021, Timely, a publicly accountable entity, granted 25,000 stock options (valued at $550,000, in total) to its executives. The options have a two-year vesting period and expire on January 1,2024. The strike price for the options is $25 while the market price at the grant date was $35.
On December 31,2021, Timely issued a $2,000,000,7% bond with detachable warrants at par. Each $1,000 bond comes with a warrant valued at $80. Without the warrants, a similar bond would have been issued at 98 on the market.
Required:
1.
Provide the journal entry(ies) associated with the stock options for fiscal 2021.
2.Provide the journal entry associated with the issuance of the convertible bond.
3. If Timely reported under ASPE, what alternative measurement approach(es) could be used to recognize the convertible bond?

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

Bucks The Next Step Advanced Medical Coding And Auditing 2019/2020

Authors: Elsevier

1st Edition

0323582613, 978-0323582612

More Books

Students also viewed these Accounting questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago