Question

Problem 16-3 ham rock Company adopted a stock-option plan on November 30, 2016, that provided that 72,5000 shares of $s par value stock be designated as available for t he granting of options to officers of the corporation at a price of s9 a share. The market price was $13 a share November , 2017 of the stk was s13sre lau 2017 The nti reeerosableor a ed of a foll the ar the s re rdered The fair wakue of the tions the arant date was $5 per option share on December 31, 2018, when the options for 2017 services lapsed. dant exerriced their cpt s8 ...i antiooc for 14 000 Becember 31, 2 06 wb . and 7,900 . .. exercised, (credit account ttles are automatically indented when amount es entered ho cot indeat aly If no entry required, select "No Fntry" for e account tites and enterO r t ns were granted, in 2010 when opt Account Titles and Explanation Debit Date Credil (To record oatioes granted to president.s (To record compensation expense attritutable to 2017.) (Te record comoensation expense att Butatle to 2018.1 (To record lapse of president's and vice presdent's ostione.Y Dec. 31, 2019 (To record issuance f shares.)

Answer 1

Date	General Journal	Debit	Credit
2-Jan	-No entry required-
Dec 31 2011	Compensation Expense ($5.00 × (15200+7900 share)	$115,500.00
	Paid-in Capital—Stock Options		$115,500.00
	To record compensation expense
Dec 31 2012	Compensation Expense ($5.00 × (14900+7900 share)	$114,000.00
	Paid-in Capital—Stock Options		$114,000.00
	To record compensation expense
Dec 31 2012	Paid-in Capital—Stock Options	$115,500.00
	Paid-in Capital from Expired Stock Options		$115,500.00
	(To record lapse of president’s and vice president’ stock
Dec 31 2013	Cash ($9.00 × 22,800 shares)	$205,200.00
	Paid-in Capital—Stock Options ($5.00 × 22,800)	$114,000.00
	Common Stock ($5.00 par value × 22,800 shares)		$114,000.00
	Paid-in Capital in Excess of Par		$205,200.00