On January 1, 2014, EZ Inc. granted stock options to officers and key employees for the purchase
Question:
On July 1, 2014, 20,000 option shares were terminated when the employees resigned from the company. The market value of the common stock was $88 per share on this date.
On March 31, 2016, 130,000 option shares were exercised when the market value of the common stock was $91 per share.
Instructions
Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2014, 2015, and 2016.
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: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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