Prepare journal entries relating to the stock option plan

Assignment Help Accounting Basics
Reference no: EM132599949

On November 1, 2020, Sarasota Company 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 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 2023: 20,000 on January 3 when the market price was $69, and 10,000 on May 1 when the market price was $78 a share.

Question 1: Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023.

Reference no: EM132599949

Questions Cloud

How do compute diluted earnings per share : How do Compute diluted earnings per share for 2020, assuming the same facts as above, except that $970,000 of 6% convertible preferred stock was issued
What is the angular speed of the cylinder : What is the angular speed of the cylinder about its center as it leaves the roof?
Discuss what products Iwaniuk Corporation should make : It allocates $25,000 of these costs to AB1 and $35,000 to XY1. Discuss what products Iwaniuk Corporation should make
Determining the magnification of the image : For a converging lens with a focal length of 12 cm viewing an object at a distance of 6 cm. What the magnification of the image?
Prepare journal entries relating to the stock option plan : Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally
What the magnification of the image : For a converging lens the object is 12 cm from the lens and the image is 12 cm from the lens on the opposite side. What the magnification of the image?
Angle between the incident ray and the reflected ray : A light beam reflects off the surface of a still lake. The light ray is orientated at 30 degrees with respect to the surface of the water
What speed is his separation from his image decreasing : A man is walking at 1.0 m/s directly towards a mirror. At what speed is his separation from his image decreasing
How do prepare the entry to record the issuance of the bonds : On May 1, 2020, Monty Company issued 1,900 $1,000 bonds at 102. Prepare the entry to record the issuance of the bonds and warrants.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd