Cr. Common Stock 7,000 Dr. Cash 5,000 Dr. APIC 2,000 Cr. Common Stock 7,000 Dr. Cash 5,000 Dr. APIC 2,000 Cr. Treasury Stock 7,000 Dr. Cash 8,000 Cr. APIC 1,000 Cr. Treasury Stock 7,000 Adjust Draw


Cr. Common Stock<br>7,000<br>Dr. Cash<br>5,000<br>Dr. APIC<br>2,000<br>Cr. Common Stock<br>7,000<br>Dr. Cash<br>5,000<br>Dr. APIC<br>2,000<br>Cr. Treasury Stock<br>7,000<br>Dr. Cash<br>8,000<br>Cr. APIC<br>1,000<br>Cr. Treasury Stock<br>7,000<br>Adjust<br>Draw<br>

Extracted text: Cr. Common Stock 7,000 Dr. Cash 5,000 Dr. APIC 2,000 Cr. Common Stock 7,000 Dr. Cash 5,000 Dr. APIC 2,000 Cr. Treasury Stock 7,000 Dr. Cash 8,000 Cr. APIC 1,000 Cr. Treasury Stock 7,000 Adjust Draw
On 5/5/2018, a CEO exercised 100 options to<br>buy a company's stock at the $50 exercise<br>price. The market price of the company's<br>stock is $80 on that day. A company reissues<br>treasury stock that originally cost $70 per<br>share to provide the shares to the CEO.<br>What is the correct journal entry for the May<br>2018 exercise of the stock options?<br>Dr. Cash<br>5,000<br>Dr. Loss on sale<br>2,000<br>Cr. Treasury Stock<br>7,000<br>Dr. Cash<br>8,000<br>Cr. APIC<br>1,000<br>Cr. Common Stock<br>7,000<br>Adjust<br>Draw<br>

Extracted text: On 5/5/2018, a CEO exercised 100 options to buy a company's stock at the $50 exercise price. The market price of the company's stock is $80 on that day. A company reissues treasury stock that originally cost $70 per share to provide the shares to the CEO. What is the correct journal entry for the May 2018 exercise of the stock options? Dr. Cash 5,000 Dr. Loss on sale 2,000 Cr. Treasury Stock 7,000 Dr. Cash 8,000 Cr. APIC 1,000 Cr. Common Stock 7,000 Adjust Draw

Jun 11, 2022
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