Johnstown Company granted 10 officers rights to buy 10,000 shares each of common stock $2 par, at $11 per share on May 1, 2020 the grant date. The stock was selling for $8 per share at the time. The rights cannot be exercised until the beginning of 2021 and expire at the end of 2022. Compensation expense is $175,000, covering a period of 2021 and 2022.

Record the following:

May 1, 2020, the grant date, issue of the rights.

Dec. 31, 2021, compensation expense

Jul. 1, 2021, 90% of the rights were exercised, as the stock climbed to $13 per share.

Dec. 31, 2022, compensation expense

Dec. 31, 2022, 10% of the rights expired because one officer left the company.

Answer rating: 100% (QA)

May 1 2020 the grant date issue of the rights Date May 1 2020 Account Debit Compensation Expense 175... View the full answer