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On November 1, 2020, Riverbed Company adopted a stock-option plan that granted options to key executives to purchase 24,900 s
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Date

Account titles and explanation

Debit

Credit

1/2/2021

No entry

12/31/2021

Compensation Expense (373500*1/2)

186750

Paid-in Capital—Stock Options

186750

(To record compensation expense for 2021)

12/31/2021

Compensation Expense

186750

Paid-in Capital—Stock Options

186750

(To record compensation expense for 2022)

1/3/2022

Cash (16600*30)

498000

Paid-in Capital—Stock Options (373500*16600/24900)

249000

Common Stock (16600*9)

149400

Paid-in Capital in Excess of Par

597600

(To record issuance of 16600 shares of $9 par value stock upon exercise of options at option price of $30)

1/5/2022

Cash (8300*30)

249000

Paid-in Capital—Stock Options (373500*8300/24900)

124500

Common Stock (8300*9)

74700

Paid-in Capital in Excess of Par

298800

(To record issuance of 8300 shares of $9 par value stock upon exercise of options at option price of $30)

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