rses/11 184 ACCOUNTING II > Assignments>Chapter 16 WileyPLUS homework VileyPLUS

Question

rses/11 184 ACCOUNTING II > Assignments>Chapter 16 WileyPLUS homework VileyPLUS homework Kieso, Intermediate Accounting, 1Ge Help I S Exercise 16-10 On November 1, 2017, Wildhorse Company adopted a stock-option plan that granted options to key executives to purchase 30,000 shares of the company's $9 par value common stock. The options were granted on January 2, 2018, 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 $30, and the fair value option-pricing model determines the total compensation expense to be $450,000. All of the options were exercised during the year 2020: 20,000 on January 3 when the market price was $68, and 10,000 on May 1 when the market price was $78 a share. Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Round intermediate calculations to s decimal places, eq. ?.24687 and final answers to o decimal places, eas.s Date Account Titles and Explanation Debit Credit 04697N1004A 32/2018

Explanation / Answer

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1/2/2018 No Entry (Total Compensation - $450,000) 12/31/2018 Compensation Expense    225,000.00 $450,000 / 2 Years    Paid in Capital - Stock Options    225,000.00 (To record the compensation expense) 12/31/2019 Compensation Expense    225,000.00 $450,000 / 2 Years    Paid in Capital - Stock Options    225,000.00 (To record the compensation expense) 1/3/2020 Cash    600,000.00 20,000 Shares X $30 Paid in Capital - Stock Options    300,000.00 $450,000 X 20,000 /30,000    Common stock    180,000.00 20,000 Shares X $9    Paid in Capital in Excess of Par    720,000.00 (To record issue of 20,000 shares) 5/1/2010 Cash    300,000.00 10,000 Shares X $30 Paid in Capital - Stock Options    150,000.00 $450,000 X 10,000 /30,000    Common stock      90,000.00 10,000 Shares X $9    Paid in Capital in Excess of Par    360,000.00 (To record issue of 10,000 shares)

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.