Use FIFO

On January 1^st 2018, Mr.Speakers implemented a number of new compensation policies:

Mr.Speakers granted each of the five original owners 100 shares of restricted common stock. The stock vests on December 31, 2019. The grant date is January 1^st, 2018. Mr.Speakers had the company valued by a certified valuation specialist, and the fair market value of the stock is determined to be $25 per share. (By the way, that valuation was a $2,000 cash expense that will need to be recorded on 1/1/2018 as well). Record all journal entries for the restricted stock for 2018 assuming that none of it was forfeited.

Mr.Speakers hired ten employees and began an employee stock purchase plan (ESPP). Employees can purchase Mr.Speakers stock with a 20% discount from fair value. On January 31, 2018, employees purchased 2,000 shares of common stock under the ESPP. Assume the fair value of the stock has not changed.

The ten employees are paid an average of $1,000 per week per person and are paid on the same schedule (every Friday for the preceding 5-day work week) as the five owners. Additionally, the five original owners have increased their salaries to $2,000 per week, per person. Record all salary transactions and accruals for January 2018.

On 1/1/2018 Mr.Speakers decided to use stock options as a retention and incentive tool for its 10 new employees. Each employee received 50 options to purchase Mr.Speakers stock for $25 per share. The options vest in two years on 1/1/2020 if the employees remain with the company for that entire time period. The options expire 12/31/2021. The estimated value of the options is $5.00 per option.

Record any necessary journal entries on 1/31/2018.

Record the 12/31/2018 journal entry for the options.

On January 1^st, 2018, Mr.Speakers made all three of its required lease payments. Record each payment.

Mr.Speakers products are becoming more popular by the day. During January 2018, Mr.Speakers built, sold, and shipped 1,000 units of each standard product it makes. Record all journal entries for the production and sale of these units, assuming all sales are for cash. The production expenses were paid 50% with cash and 50% on account. Date these entries 1/31/18.

Mr.Speakers received payment on $60,000 of its outstanding A/R. Date this entry 1/31/18.

Mr.Speakers paid down $160,000 of its outstanding A/P. Date this entry 1/31/18.

On 1/1/ 2018 Mr.Speakers made its required bond interest payment. Record the transaction.

On 1/31/2018. Mr.Speakers retired all of its outstanding bonds at bond prices of 90. Record all bond transactions on 1/31/2018.