On January 1, 2020, Pharoah Corporation granted 5,400 options to
executives. Each option entitles the holder to purchase one share
of Pharoah’s $5 par value common stock at $50 per share at any time
during the next 5 years. The market price of the stock is $60 per
share on the date of grant. The fair value of the options at the
grant date is $141,000. The period of benefit is 2 years.
Prepare Pharoah’s journal entries for January 1, 2020, and December
31, 2020 and 2021. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the
amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
choose a transaction date 1/1/2012/31/2012/31/21 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
choose a transaction date 1/1/2012/31/2012/31/21 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
choose a transaction date 1/1/2012/31/2012/31/21 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
On January 1, 2020, Pharoah Corporation granted 5,400 options to executives. Each option entitles the holder...
On January 1, 2020, Pharoah Corporation granted 5,400 options to executives. Each option entitles the holder to purchase one share of Pharoah’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $60 per share on the date of grant. The fair value of the options at the grant date is $141,000. The period of benefit is 2 years. Prepare Pharoah’s journal entries for January 1,...
On January 1, 2020, Pronghorn Corporation granted 4,600 options to executives. Each option entitles the holder to purchase one share of Pronghorn’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $69 per share on the date of grant. The fair value of the options at the grant date is $161,000. The period of benefit is 2 years. Prepare Pronghorn’s journal entries for January 1,...
On January 1, 2020, Ayayai Corporation granted 5,100 options to executives. Each option entitles the holder to purchase one share of Ayayai's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $70 per share on the date of grant. The fair value of the options at the grant date is $143,000. The period of benefit is 2 years. Prepare Ayayai's journal entries for January 1,...
On January 1, 2020, Bridgeport Corporation granted 5,300 options to executives. Each option entitles the holder to purchase one share of Bridgeport’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $68 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Bridgeport’s journal entries for January 1,...
On November 1, 2020, Sheffield Company adopted a stock-option plan that granted options to key executives to purchase 21,300 shares of the company’s $11 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the...
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On January 1, 2021, Blue Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company’s $10 par common stock at $23 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $378,200....
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Exercise 16-20 On January 1, 2020, Sunland Corp. granted stock options to its chief executive officer. This is the only stock option plan that Sunland offers and the details are as follows: Option to purchase: 2,700 common shares Option price per share: $37.00 Fair value per common share on date of grant: $28.80 Stock option expiration: The earlier of eight years after issuance or the employee’s cessation of employment with Sunland for any reason other than retirement Date when options...
On January 1, 2016, Metlock Corporation granted 10,300 options to key executives. Each option allows the executive to purchase one share of Metlock’s $5 par value common stock at a price of $21 per share. The options were exercisable within a 2-year period beginning January 1, 2018, if the grantee is still employed by the company at the time of the exercise. On the grant date, Metlock’s stock was trading at $26 per share, and a fair value option-pricing model...