On August 15,2011,Madison Company Issued 10,000 Options on the Shares

question 62

Essay

On August 15,2011,Madison Company issued 10,000 options on the shares of MVC (Middefield Valley Corporation).Each option gives the option holder the right to buy one share of MVC at $70 per share until March 16,2012.Madison received $100,000 for issuing these options.At the company's year-end of December 31,2011,the options contracts traded on the Montreal Exchange at $9.50 per contract.On March 16,2012,MVC shares closed at $63 per share,so none of the options was exercised.
Requirement:
Record the journal entries related to these call options.

Understand the significance of emotional intelligence in managing conflicts.

Understand the definition and types of power within organizations.

Recognize the role of a supervisor in implementing change and resolving conflicts.

Identify different sources of power (position, personal, expert, coercive) and their impact on organizational behavior.

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Definitions:

"On a Frolic of His Own"

This phrase describes a situation where an employee undertakes actions that are substantially different from their employment duties, thus removing employer liability for those actions.

Mediation

A discussion between the parties to a dispute that is facilitated by a mediator in an effort to encourage and assist them in coming to an agreement.

Employment Standards Act

Legislation that outlines the minimum standards employers must meet in terms of wages, working hours, leaves, and other employment conditions.

Trade Unions' Activities

Collective efforts and operations carried out by organized groups of workers to protect their rights and interests.