Stock Rights, Retained Earnings Flashcards
1
Q
What is the JE for stock rights?
A
-Cr. Equity at exercise price not market price when rights exercised, D r. Cash
2
Q
What’s the accounting for stock rights issue to outside parties for services?
A
- At issuance of rights, Dr. Expense and Cr. Equity for difference between market and exercise price times number of shares under option
- At exercise record at exercise price