Exhibit 16-7 On January 1, 2010, 70 executives were granted a performance-based stock option plan that would award them each a maximum of 300 shares of $5 par common stock for $12 a share based on the increase in sales over the next three years.The fair value per option on the grant date was $16.The award table is as follows: $\begin{array}{ll} \text { Increase in Sales } & \text { No. of Share } \\ 10 \% & 100 \\ 15 \% & 200 \\ 20 \% & 300 \end{array}$ The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%. - Refer to Exhibit 16-7.In 2012 the actual sales increase was determined to be 18%, and the overall turnover rate was exactly 2%.The compensation expense for 2012 is (to the nearest dollar)

A) $210, 828 B) $140, 552 C) $ 70, 276 D) $ 0 A) $210, 828 B) $140, 552 C) $ 70, 276 D) $ 0

When donated treasury stock is reissued for cash, the entire proceeds are credited to Donated Capital under which of the following methods? $\begin{array}{lll} &\text { Cost Method }&\text { Par Value Method }\\ \text { I. } & \text { Yes } & \text { Yes } \\ \text { II. } & \text { Yes } & \text { No } \\ \text { III. } & \text { No } & \text { No } \\ \text { IV } & \text { No } & \text { Yes } \end{array}$

A) I B) II C) III D) IV A) I B) II C) III D) IV

Exam 16: Contributed Capital

For stock appreciation rights (SARs)compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is

(Multiple Choice)

4.8/5

(86)

Question 101

Exhibit 16-9 Battleground, Inc.had never had a treasury stock transaction prior to 2010.It experienced the following treasury stock transactions during 2010: Assume the cost method is used. Refer to Exhibit 16-9.The entry to record the retirement of 100 shares on 5/10/2010 would include a

(Multiple Choice)

4.8/5

(71)

Question 102

Several items appear below. Required: Place an X in front of each item that will appear in the stockholders' equity section of the balance sheet.

(Essay)

4.8/5

(74)

Question 103

Exhibit 16-5 On January 1, 2010, Roberto Company adopts a compensatory stock option plan and grants 40 executives 1, 000 shares each at $30 a share.The fair value per option is $7 on the grant date.The company estimates that its annual employee turnover rate during the service period of three years will be 4%. - Refer to Exhibit 16-5.The journal entry to record compensation expense for 2010 will be (Round off any turnover calculations to three decimal places.)

(Multiple Choice)

4.9/5

(85)

Question 104

A corporation that operates in Texas but is incorporated in Nevada is viewed as a

(Multiple Choice)

4.8/5

(92)

Question 105

Exhibit 16-8 On January 1, 2010, Marietta Company granted stock appreciation rights (SARs)to the president, which permitted her to receive cash or stock for the difference between the quoted market price and $50 for 2, 000 shares of the company's stock on the exercise date.The service period ends on December 31, 2012, and the rights must be exercised by December 31, 2015.Assume that on December 31, 2013, the president exercises all of her rights and receives cash.Using an options pricing model, the estimated fair values of the SARs were as follows: J anuary 1,2010 \ 10 December 31, 2010 15 December 31, 2011 20 December 31, 2012 19 December 31, 2013 23 - Refer to Exhibit 16-8.What is the compensation expense related to the SARs for the year ending December 31, 2012?

(Multiple Choice)

4.9/5

(83)

Question 106

When common stock is issued at an amount greater than par value, the difference between the par value and the proceeds from the sale is recorded by

(Multiple Choice)

4.7/5

(77)

Question 107

Exhibit 16-7 On January 1, 2010, 70 executives were granted a performance-based stock option plan that would award them each a maximum of 300 shares of $5 par common stock for $12 a share based on the increase in sales over the next three years.The fair value per option on the grant date was $16.The award table is as follows: Increase in Sales No. of Share 10\% 100 15\% 200 20\% 300 The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%. - Refer to Exhibit 16-7.In 2012 the actual sales increase was determined to be 18%, and the overall turnover rate was exactly 2%.The compensation expense for 2012 is (to the nearest dollar)

(Multiple Choice)

5.0/5

(84)

Question 108

When donated treasury stock is reissued for cash, the entire proceeds are credited to Donated Capital under which of the following methods? Cost Method Par Value Method I. Yes Yes II. Yes No III. No No IV No Yes

(Multiple Choice)

4.8/5

(78)

Question 109

When using the preferred approach to account for a compensatory stock option plan, the total compensation cost is the

(Multiple Choice)

4.8/5

(78)

Question 110

Universities, hospitals, and churches are examples of which type of corporation?

(Multiple Choice)

4.9/5

(84)

Question 111

Werling Co.had 10, 000 shares of $8 par common stock outstanding just prior to a stock split.The stock was split two-for-one and the par value was reduced to $3.Which entry correctly records this stock split?

(Multiple Choice)

4.8/5

(77)

Question 112

A corporation is a legal entity

(Multiple Choice)

4.9/5

(75)

Question 113

The corporate form of organization is important to the U.S.economy because

(Multiple Choice)

4.8/5

(81)

Question 114

A noncompensatory stock option plan is designed to

(Multiple Choice)

4.8/5

(74)

Question 115

Listed below are various classifications of corporations.Following the list is a series of descriptive statements. Required: Match the corporate classifications to the descriptive statements that best describe them.

(Essay)

4.9/5

(87)

Question 116

A stock option plan will be defined as compensatory if it has which one of the following characteristics?

(Multiple Choice)

4.9/5

(83)

Question 117

Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a noncompensatory stock option plan is recorded by the corporation at the

(Multiple Choice)

4.8/5

(87)

Question 118

The authorized shares of capital stock is the number of shares

(Multiple Choice)

4.9/5

(81)

Question 119

The preference to dividends that preferred stockholders have is

(Multiple Choice)

4.8/5

(71)

Question 120

Showing 101 - 120 of 121

Exam 16: Contributed Capital

For stock appreciation rights (SARs)compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is

Exhibit 16-9 Battleground, Inc.had never had a treasury stock transaction prior to 2010.It experienced the following treasury stock transactions during 2010: Assume the cost method is used. Refer to Exhibit 16-9.The entry to record the retirement of 100 shares on 5/10/2010 would include a

Several items appear below. Required: Place an X in front of each item that will appear in the stockholders' equity section of the balance sheet.

A corporation that operates in Texas but is incorporated in Nevada is viewed as a

When common stock is issued at an amount greater than par value, the difference between the par value and the proceeds from the sale is recorded by

When donated treasury stock is reissued for cash, the entire proceeds are credited to Donated Capital under which of the following methods? Cost Method Par Value Method I. Yes Yes II. Yes No III. No No IV No Yes

When using the preferred approach to account for a compensatory stock option plan, the total compensation cost is the

Universities, hospitals, and churches are examples of which type of corporation?

Werling Co.had 10, 000 shares of $8 par common stock outstanding just prior to a stock split.The stock was split two-for-one and the par value was reduced to $3.Which entry correctly records this stock split?

A corporation is a legal entity

The corporate form of organization is important to the U.S.economy because

A noncompensatory stock option plan is designed to

Listed below are various classifications of corporations.Following the list is a series of descriptive statements. Required: Match the corporate classifications to the descriptive statements that best describe them.

A stock option plan will be defined as compensatory if it has which one of the following characteristics?

Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a noncompensatory stock option plan is recorded by the corporation at the

The authorized shares of capital stock is the number of shares

The preference to dividends that preferred stockholders have is

The Environment of Financial Reporting

Financial Reporting: Its Conceptual Framework

Review of a Companys Accounting System

The Balance Sheet and the Statement of Changes in Stockholders Equity

The Income Statement and the Statement of Cash Flows

Additional Aspects of Financial Reporting and Financial Analysis

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Property, Plant, and Equipment: Acquisition and Disposal

Depreciation and Depletion

Intangibles

Current Liabilities and Contingencies

Long-Term Liabilities and Receivables

Investments

Earnings Per Share and Retained Earnings

Income Recognition and Measurement of Net Assets

Accounting for Income Taxes

Accounting for Postemployment Benefits

Accounting for Leases

The Statement of Cash Flows

Accounting for Changes and Errors

Time Value of Money Module

Filters