Under the disclosure provisions of SFAS No.123, the estimated stock option expense for 2006 would be $15,500 for W Co.. When the company records this expense:
A) retained earnings account has no effect
B) the equity on b/s has no effect
C) the total assets increase by 15,500
D) the capital decreases by 15,500
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D) the capital decreases by 15,500
It decreases capital because ...
Solution Summary
This solution explains the correct answer for W Co. under the disclosure provisions of SFAS No. 123.
...expense for 2009 of $30,000 should be recorded. The difference between the cost and the accumulated depreciation is to be credited to retained earnings since ...
...expense 10,400 Utilities expense 3,100 Total Expense 45,300 Net ...Retained earnings is shown net of dividends. ... in the books, this is the recording activity When ...
... c. Assets = Liabilities + Paid-in Capital + Retained Earnings d. Assets ... during the period result from: a. recording depreciation expense, and they ...
...Earnings (end of year) + $180,000 Retained Earnings (end of ... h. Cash sales of $12,500 for the month were recorded. ... Insurance Expense 3,010 Prepaid Expense 3,010. ...
... C 56,000 (4 X $14,000) Retained Earnings 84,000 To reinstate the asset and record the previous depreciation till 2007. Depreciation Expense 14,000 Accumulated ...
... be any difference in net rent expense for income ... income after the adjustments are recorded Net Income ... b. Ending retained earnings balance on the balance sheet ...
