Prepare the necessary entries from January 1, 2023 to February 1, 2025 for the following events....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare the necessary entries from January 1, 2023 to February 1, 2025 for the following events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) 1. 2 3, On January 1, 2023, the shareholders of Blue Inc. adopted a stock option plan for its top executives, where each plan participant could receive rights to purchase up to 5,400 common shares at $41 per share. At this date, the shares were trading for $32 per share. On February 1, 2023, options were granted to five executives to purchase 5,400 shares each. The options were non- transferable, and the executive had to remain an employee of the company to exercise the option. The options expire on February 1, 2025. It is assumed that the options were for services performed equally during 2023 and 2024. The Black- Scholes option pricing model determined total compensation expense to be $414,000. On February 1, 2025, four executives exercised their options. The fifth executive chose not to exercise their options, which therefore were forfeited. Prepare the necessary entries from January 1, 2023 to February 1, 2025 for the following events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) 1. 2 3, On January 1, 2023, the shareholders of Blue Inc. adopted a stock option plan for its top executives, where each plan participant could receive rights to purchase up to 5,400 common shares at $41 per share. At this date, the shares were trading for $32 per share. On February 1, 2023, options were granted to five executives to purchase 5,400 shares each. The options were non- transferable, and the executive had to remain an employee of the company to exercise the option. The options expire on February 1, 2025. It is assumed that the options were for services performed equally during 2023 and 2024. The Black- Scholes option pricing model determined total compensation expense to be $414,000. On February 1, 2025, four executives exercised their options. The fifth executive chose not to exercise their options, which therefore were forfeited.
Expert Answer:
Answer rating: 100% (QA)
1January 1 2023 No Entry 2February 1 2023 Debit Compensation Expense Stock Options 414000 Credit Add... View the full answer
Posted Date:
Students also viewed these accounting questions
-
BwA Woodturning is a small company that operates in Northern Ontario, The company produces and sells a single product-Gemwood ice Scoop. The product is made of thin strips of Baltic Birch that are...
-
Two dominant genes determine black colouring of teeth; one of them is located in an autosome (A and a), and the other in X-chromosome (X and X). A daughter and a son with normal teeth colour were...
-
Sheridan Design Inc. (SD) is a privately owned business that provides interior decorating options for consumers. SD follows ASPE. The software that it purchased six years ago to present clients with...
-
Did you ever purchase a bag of M&??s candies and wonder about the distribution of colors? Did you know in the beginning they were all brown? Now, peanut M&Ms are 12% brown, 15% yellow, 12% red, 23%...
-
Line 1 of the following table shows cash payments that your company has just promised to make. Below that are the cash flows on a blue-chip corporate note. The interest rate is 10 percent. Your...
-
At a section where the diameter is \(4 \mathrm{in}\)., methane flows with a velocity of \(50 \mathrm{ft} / \mathrm{sec}\) and a pressure of \(85 \mathrm{psia}\). At a downstream section, where the...
-
Identify at least five sources for locating the whereabouts of a witness.
-
Absolute Leasing, Inc. agrees to lease equipment to Allen, Inc. on January 1, 2012. They agree on the following terms: 1) The normal selling price of the equipment is $350,000 and the cost of the...
-
1. AMG Manufacturing Company which uses the periodic inventory system showed the following transactions during the month of May. Units Purchased 10 20 22 Date 5/1 (BI) 5/5 5/15 5/19 5/24 -15 5/30...
-
The company has made the following profit-sharing contributions to the retirement plan for Archie and Elaine for each of the related years. 2021 2020 2019 2018 2017 2016 Balance 1/1/16 Archie None...
-
Cheryl Johnson, the director of marketing for the Thingamajig Company, has collected data on the annual number of households in the state, the adjusted average annual household income, and...
-
Graph the line. y-1=5(x-3)
-
Watch the two videos on cultural development in Kenya. Question: Where Kenya is located in Africa, and can you name three African nations that are currently focusing on community development projects...
-
Imagine you are traveling in a wide open space. You walk 2 0 . 0 m due north, and then 1 7 . 0 m due east. what is your displacement start to finish?
-
You recently received a scholarship from the CEO of a company called Scott's Bots. The CEO, Mr. Scott, has taken a personal interest in your studies. He has suggested that you should major in...
-
Provide an example of how you can provide a rights based care approach? Provide an example of how you can provide a consumer directed care approach?
-
Compare and contrast two companies and their green initiatives. Go to the online library or internet and identify two companies with relatively the same product or service (transportation company)....
-
2.) Find the Laplace transform of f(t) 7e-St cos 2t +9 sinh2 2t. Use Laplace Table. %3D
-
True or False. The phase angle of the response depends on the system parameters \(m, c, k\), and \(\omega\).
-
True or False. Damping reduces the amplitude ratio for all values of the forcing frequency.
-
True or False. The unbalance in a rotating machine causes vibration.
Study smarter with the SolutionInn App