On January 1, 2007 Sampress Company adopts a compensatory share option plan for its 50 executives. The
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Because of higher turnover, at the end of 2008 Sampress changes it estimated turnover rate to 5% per year for the entire service period. At the end of 2009, Sampress determined that the actual turnover was seven executives for the entire service period. On January 6, 2010, eight executives exercise their options.
Required
1. Prepare a schedule of the Sampress Company’s compensation computations for its compensatory share option plan for 2007 through 2009 (round all computations to the nearest dollar).
2. Prepare the journal entries of Sampress Company for 2007 through 2010 in regard to this plan.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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