Provide the journal entry only for the exercise of stock options. Do not provide the other...
Provide the journal entry only for the exercise of stock options. Do not provide the other journal entries.
On 1/1/20, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 30,000 shares of common stock at $40 per share. The par value is $10 per share. On 2/1/20, options were granted to each of five executives to purchase 30,000 shares. The options expire on 2/1/22. It is assumed that the options were for services performed equally in 2020 and 2021. The Black-Scholes option pricing model determines total compensation expense to be $3,200,000. At 2/1/22, four executives exercised their options.
Homework Answers
| Cash (4*30,000*40) | 4,800,000 | ||
| Paid in capital - Stock options (3,200,000*4/5) | 2,560,000 | ||
| Common stock (30000*40) | 1,200,000 | ||
| Paid in capital in excess of par - Common | 6,160,000 | ||
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Provide the journal entry only for the exercise of stock
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Prepare the necessary entries from 1/1/20-2/1/22 for the following events using the fair value method. (Credit...
Prepare the necessary entries from 1/1/20-2/1/22 for the
following events using the fair value method. (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.)
1.
On 1/1/20, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
16,000 shares of common stock at $45 per share. The par...
Exercise 138 Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the fair value...
Exercise 138
Prepare the necessary entries from 1/1/17-2/1/19 for the
following events using the fair value method. (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.)
1.
On 1/1/17, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
15,000 shares of common stock at $35 per share....
E16.10 (LO 3) (Issuance and Exercise of Stock Options) On November 1, 2020, Columbo Com- pany...
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E16.10 (LO 3) (Issuance and Exercise of Stock Options) On November 1, 2020, Columbo Com- pany...
E16.10 (LO 3) (Issuance and Exercise of Stock Options) On November 1, 2020, Columbo Com- pany adopted a stock-option plan that granted options to key executives to purchase 30,000 shares of the company's $10 par value common stock. The options were granted on January 2, 2021, and were exer- cisable 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...
Please show all work On November 1, 2017, Olympic Company adopted a stock-option plan that granted...
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Prepare the necessary entries from 1/1/20-2/1/22 for the
following events using the fair value method. (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.)
1.
On 1/1/20, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
16,000 shares of common stock at $45 per share. The par...
Exercise 138
Prepare the necessary entries from 1/1/17-2/1/19 for the
following events using the fair value method. (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.)
1.
On 1/1/17, the stockholders adopted a stock option plan for top
executives whereby each might receive rights to purchase up to
15,000 shares of common stock at $35 per share....
E16.10 (LO 3) (Issuance and Exercise of Stock Options) On November 1, 2020, Columbo Com- pany adopted a stock-option plan that granted options to key executives to purchase 30,000 shares of the company's $10 par value common stock. The options were granted on January 2, 2021, and were exer- cisable 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...
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