3 Martinez Audio Visual Incorporated offers an incentive stock option plan to its regional managers. On...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3 Martinez Audio Visual Incorporated offers an incentive stock option plan to its regional managers. On January 1, 2024, options were granted for 36 million $1 par common shares. The exercise price is the market price on the grant date-$10 per share. Options cannot be exercised prior to January 1, 2026, and expire December 31, 2030. The fair value of the 36 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $11 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg1 Reg 2 to 5 Assessment Tool Frame Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $11 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (e. 10,000,000 should be entered as 10). No 1 Date General Journal December 31, 2024 Compensation expense oc Show less Debit Credit 9.000 Req 1 Req 2 to 5 Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $11 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (ie., 10,000,000 should be entered as 10). Show less A Mc No 1 Date December 31, 2024 Compensation expense General Journal Paid-in capital-expiration of stock options 2 December 31, 2024 Compensation expense Paid-in capital excess of par 3 March 12, 2026 Cash Common stock 4 Paid-in capital-stock options December 31, 203(Paid-in capital-expiration of stock options Paid-in capital-excess of par > 3 Martinez Audio Visual Incorporated offers an incentive stock option plan to its regional managers. On January 1, 2024, options were granted for 36 million $1 par common shares. The exercise price is the market price on the grant date-$10 per share. Options cannot be exercised prior to January 1, 2026, and expire December 31, 2030. The fair value of the 36 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $11 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg1 Reg 2 to 5 Assessment Tool Frame Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $11 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (e. 10,000,000 should be entered as 10). No 1 Date General Journal December 31, 2024 Compensation expense oc Show less Debit Credit 9.000 Req 1 Req 2 to 5 Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $11 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (ie., 10,000,000 should be entered as 10). Show less A Mc No 1 Date December 31, 2024 Compensation expense General Journal Paid-in capital-expiration of stock options 2 December 31, 2024 Compensation expense Paid-in capital excess of par 3 March 12, 2026 Cash Common stock 4 Paid-in capital-stock options December 31, 203(Paid-in capital-expiration of stock options Paid-in capital-excess of par >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
A system consists of n identical components each of which will, independently, function with probability p. The system will be able to operate effectively if at least half of the components function....
-
Harrison, a mens clothing retailer located in Westport, Connecticut, ordered merchandise from Ninth Street East, Ltd., a Los Angelesbased clothing manufacturer. Ninth Street delivered the merchandise...
-
Given this equilibrium, predict the direction of shift for each stress. H2(g) + F2(g) + 2HF (g) + 546 kJ a. Increased temperature b. Addition of H2 c. Decreased pressure
-
What are some potential roles for advisory councils? How can organizations use these groups effectively?
-
The MoMi Corporations cash flow from operations before interest and taxes was $2 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the...
-
Discuss it in terms of concept analysis and evaluation of the Affordable Care Act (ACA) : Impact, Defining Value, and Healthcare Reform. Support your statements with credible evidence and offer an...
-
When I try to run the program below I keep receiving an error: import java.util.Scanner; public class Package { private double length; private double width; private double height; private Scanner...
-
Information to calculate the adjusted cash balance for Everest Climbing Gear is as follows: Cash balance per general ledger $4,000 Customer's cheque returned--NSF 150 Bank service charges 80 Deposits...
-
Zipp Company manufactures two products (X and Y). The overhead costs (90,000) have been divided into three cost pools: setups 30,000; machining 30,000; ordering 30,000. Product X had 5 setups, 1000...
-
(d) A C function for the matrix-vector multiply using Compressed Row Storage is shown below: 1 int mat_vec(float *v, struct CRS_mat M, float *u){ 2 int i,j; 3 4 5 6 for(i=0;i
-
Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $11,400 $17,500 Accounts receivable 8,000...
-
Navistar International and Boyne Resorts The Navistar International video demonstrates the use of standard costs and variance analysis in a manufacturer of trucks and diesels engines with forty major...
-
S company issued bonds on Jan 1, 2014. Interest payments are semi annually on July 1 and Jan 1 of each year. The effective interest rate of amortization is used, face value is 200,000$ proceeds from...
-
Difference between truncate & delete
-
Hardy Instruments, Inc., is a manufacturer of various measuring and controlling instruments. Financial statement data for the firm are as follows: Required a. Using the given data, calculate ratios 1...
-
You are analyzing the performance of Jackson Corporation, a manufacturer of personal care products, for the most recent year. The following data are taken from the firm's latest annual report: In...
-
Past quarterly data are presented below for Company company's fiscal year ends on the Saturday nearest to January 31. The other company is the Gillette Company prior to its acquisition by Procter \&...
Study smarter with the SolutionInn App