Final Accounting class

Question 1

black schoals model inputs

Answer 1

FMV at grant
grant price
int rate
time to exercise
expiration date
volatility

Question 2

stock grant

Answer 2

grant price 20
FV 20
shares 100
issued 1/1/12
vest 12/31/12
Comp Exp        2000
      APIC - Rest        2000
when bought
APIC               2000
       C/S                     100
       APIC                   1900

Question 3

stock option

Answer 3

grant price 20
option price 8(fair value of the option or warrant)
Comp Exp   800
    APIC              800
APIC           800
Cash           2000
    C/S                  100
    APIC                2700
the APIC account has to be debited to get rid of the amount or you net it
No par

Question 4

Test
6 ch 20 questions, fairly easy
37 questions 1 is name

Answer 4

know

Question 5

EPS how to calculate

Answer 5

know

Question 6

No Stock appreciation

Answer 6

know

Question 7

know how to account for employee stock purchase plans

Answer 7

discount remember

Question 8

No par stock

Answer 8

the common stock is the cash plus the APIC

Question 9

how to account for treasury stock repurchase

Answer 9

know

Question 10

know the effects of stock splits

Answer 10

if you have to write up the stock that were already issued

Question 11

Final is on friday at 10:30

Answer 11

be there

Question 12

know how things are reported

Answer 12

lklkkkkkk

Question 13

know error correction

Answer 13

study it

Question 14

diluted EPS

Answer 14

know what effects it

Question 15

changes

Answer 15

EP 1. Change from declining balance depreciation to straight-line.
E 2. Change in the estimated useful life of office equipment.
E 3. Technological advance that renders worthless a patent with an unamortized cost of $45,000.
PR 4. Change from determining lower of cost or market for inventories by the individual item approach to the aggregate approach.
PR 5. Change from LIFO inventory costing to weighted-average inventory costing.
E 6. Settling a lawsuit for less than the amount accrued previously as a loss contingency.
R 7. Including in the consolidated financial statements a subsidiary acquired several years earlier that was appropriately not included in previous years.
N * 8. Change by a retail store from reporting warranty expense on a pay-as-you-go basis to estimating the expense in the period of sale.
PR 9. A shift of certain manufacturing overhead costs to inventory that previously were expensed as incurred to more accurately measure cost of goods sold. (Either method is generally acceptable.)
E 10. Pension plan assets for a defined benefit pension plan achieving a rate of return in excess of the amount anticipated.