WEEK 5 FINAL EXAM CONTINUED
kerydaBrief Exercise 16-6
On January 1, 2014, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years.
Prepare Barwood’s journal entries for January 1, 2014, and December 31, 2014 and 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Prepare Barwood’s journal entries for January 1, 2014, and December 31, 2014 and 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date | Account Titles and Explanation | Debit | Credit | ||||||
1/1/14 |  | $ | $ | $ | $ [removed] |
Brief Exercise 20-11
Manno Corporation has the following information available concerning its postretirement benefit plan for 2014.
Compute Manno’s 2014 postretirement expense.
| Service cost | $40,000 | |
| Interest cost | 47,400 | |
| Actual and expected return on plan assets | 26,900 |
Compute Manno’s 2014 postretirement expense.
| Postretirement expense 2014 | $ [removed] |
Brief Exercise 20-12
For 2014, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell’s contribution to the plan during 2014 was $180,000.
Prepare Sampsell’s 2014 entry to record postretirement expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare Sampsell’s 2014 entry to record postretirement expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
| [removed] | [removed] | [removed] |
| [removed] | [removed] | [removed] |
| [removed] | [removed] | [removed] |
10 years ago
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