LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 1 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $12 per option.Required:1. Prepare the appropriate entry when the options are awarded on January 1, 2021.2. Prepare the appropriate entries on December 31 of each year 2021–2024.3. Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2023 and 2024.

Q: 3,000 shares of the On January 1, 2021, Wildhorse Inc. granted stock options to officers and key…

A:

Q: On January 1, 2020, Barwood Corporation granted 5,000 options to executives. Each option entitles…

A: The annual compensation expense is calculated as follows:  The annual compensation expense is…

Q: Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January…

A: For issue of Employee stock option, an employee compensation expense will be recorded equal to the…

Q: LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2018.…

A:

Q: On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On January 1, 2021, Hugh Morris Comedy Club (HMCC) granted 1 million stock options to key executives…

A:

Q: Holden Company has a share appreciation rights plan for its key executives. This SAR plan gives each…

A: Journal Entry In Journal entry ,any transactions either economic or non-economic are recorded and…

Q: On January 1, 2016, sixty executives are offered a fixed compensatory stock option plan in which…

A: Employees Stock Option Plan : Employee Stock Option Plan is a scheme in which the company encourages…

Q: Carmichael Co. adopted a stock option plan for its top executives. Under the plan, each option…

A: Options are the financial instruments that give right to the buyer to sell or buy the options on the…

Q: 1. Determine the total compensation cost pertaining to the options on January 1, 2021. 2. Prepare…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: FIU Inc granted 25,000 stock options to its top management team on January 1, 2022. The options vest…

A: An employee stock option that grants specified employees of a company the right to buy a certain…

Q: On January 1, 2020, Crane Corporation granted 5,200 options to executives. Each option entitles the…

A: Employee Stock Option: When a company grants an employee stock option (ESO), it is referring to a…

Q: On January 1, 2019, Roswall Corporation’s common stock is selling for $55 per share. On this date,…

A:

Q: What amount of compensation expense should Sheridan recognize as a result of this plan for the year…

A: Solution:- Given, Compensation expense = $1,508,000 Market price of shares available in the question…

Q: On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary…

A: Share-Based Payment:- It is a payment where company receives goods or service either in…

Q: Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January…

A: Employee’s Stock options: Company can hold on to a greater portion of earnings while still providing…

Q: On January 1, 2020, Sandhill Corporation granted 4,700 options to executives. Each option entitles…

A: Journal entries refers to the systematic documentation of financial transactions of a company in its…

Q: On January 1, 2018, Adams-Meneke Corporation granted 25 million incentive stock options to division…

A: 1) Total Compensation cost on January 1, 2018 = No. of Stock options*Fair Value of Option Total…

Q: Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020.…

A: Journal Entry:   It is a systematic record of a financial transaction of an organization recorded in…

Q: Spaulding Inc. granted their executives incentive stock options on January 1, 2023. On this date,…

A: Stock options can be defined as an equity compensation that is granted to the employees by their…

Q: On January 1, 2020, XYZ Co. granted options to key executives to purchase 100,000 shares of the…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: On January 1, 2019, Nevada Company granted share options to each of the 300 employees working in the…

A: The employee stock options are two types: Cash based stock options – The amount of compensation…

Q: Under its executive stock option plan, National Corporation granted 30 million options on January 1,…

A: Journal Entry is basically refers to the record of the debits and credits transaction entries in the…

Q: Practice Exercises - Stock Options On November 1, 2020, Pronghorn Company adopted a stock-option…

A: The question is based on the concept of Financial Accounting

Q: On January 1, 2021, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key…

A: COMPENSATION EXPENSE FOR DECEMBER 31, 2021 :  PARTICULARS AMOUNT FUTURE VALUE OF OPTION $12…

Q: LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2016.…

A: 1. 2.

Q: On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary…

A: 1. Share-Based Payment:- It is a payment where company receives goods or service either in…

Q: On January 1, 2019, a company granted 100,000 options to key executives. Each option allows the…

A: Given:

Q: On January 1, 2021, Howmet Aerospace granted options that permit executives to purchase 34 million…

A: A stock is a financial instrument issued by a corporation to raise equity funds from the primary…

Q: On January 1, 2019, the shareholders of Aylmer approved a plan that grants options to the company's…

A:

Q: On January 1, 2017, Barwood Corporation granted 5,000 options to executives. Each option entitles…

A: Definition: Journal entry: Journal entry is a set of economic events that can be measured in…

Q: Corinthians granted 5,000 share options to employees at an exercise price of P5 per share. The…

A: 2021 Compensation expense = 4500 options x P402.5 years× 1 year…

Q: On January 1, 2020, Waldorf Corporation granted 40,000 options to key executives. Each option allows…

A: SOLUTION- PREPARE THE JOURNAL ENTRIES IS THE PRIMARY STEP OF THE ACCOUNTING CYCLE IN WHICH ALL THE…

Q: Under its stock option plan, Ameri Corp. granted 3 million stock options to employees on January 1,…

A: A corporation granted 30,00,000 stock options to employees. The fair value of each option is $5. The…

Q: On January 1, 2020, Prospero Games Inc. granted stock options to managers and key employees under…

A: Employees stock option Plan Employees stock option plan which is considered to be the best option…

Q: In order to retain certain key executives, Waterway Industries granted them incentive stock options…

A:

Q: what is the compensation expense related to the options to be recorded in 2022?

A: IFRS 2 deals with Share based payments.  In share based payments, the compensation expense is the…

Q: On January 1, 2021, a company granted stock options for 89,000 shares of its $12 par value common…

A: Given that: Stock option price = $22 per share

Q: On January 1, 2021, Major Corp. granted its employees an option to purchase 5,000 of Major's common…

A: Employee Stock Option Plan: It is an employee benefit plan to participate in the Employee Stock…

Q: On January 1, 2020, Orr Co. established a stock appreciation rights plan for its executives. They…

A: Journal entry is the process of recording business transactions in the books of accounts for the…

Q: On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary…

A: 1. Share-Based Payment:- It is a payment where company receives goods or service either in…

Q: On January 1, 2019, an entity granted 100 share options each to 500 employees, conditional upon the…

A: Share option means where the employees is given share free of cost or at very nominal value if the…

Q: At January 1, 2021, the company had issued 40,000 executive stock options permitting executives to…

A: As per IAS 102, Share based payments Compensation expense will be recognised each year, over vesting…

Q: On January 1, 2019, Nevada Company granted share options to each of the 300 employees working in the…

A: Given that, On January 1, 2019 Nevada Company grants share option to 300 employees of sales…

Q: On November 1, 2017, Marigold Company adopted a stock-option plan that granted options to key…

A: The question is based on the concept of Journal entries

Q: On January 1, 2010, Barwood Corporation granted 5,000 options to executives. Each option entitles…

A: Annual expense=Total compensation expenseBenefit period=$150,0002=$75,000

Q: Newmont Corp grants stock options to its top executives. On January 1, 2021, 24 million options were…

A: Equity shares are those shares which do not have preferential right on dividend and repayment of…

Q: On January 2, 2021, the Life Science Corporation granted 9,000 stock options allowing employees to…

A: Compensation expense for year 2021 =Number of stock options granted × Fair value of stock…

Q: On January 1, 2021, Adams-Meneke Corporation granted 20 million incentive stock options to division…

A: Stock option plans are options to provided to employees to purchase company stock at a future date…

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.