On January 1, 2023, Cullumber Corp. granted stock options to its chief executive officer. This is the only stock option plan that Cullumber offers and the details are as follows: Option to purchase: Option price per share: Fair value per common share on date of grant: Stock option expiration: Date when options are first exercisable: 2,600 common shares $38.00 $31.10 The earlier of eight years after issuance or the employee's cessation of employment with Cullumber for any reason other than retirement The earlier of four years after issuance or the date on which the employee reaches the retirement age of 65 Fair value of options on date of grant: $7.00 On January 1, 2028, 2,080 of the options were exercised when the fair value of the common shares was $41. The remaining stock options were allowed to expire. The CEO remained with the company throughout the period.
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- On January 1st, 2021, Moon Corp. granted stock options to its senior executive officers. This is the only stock option plan that Moon offers and the details are as follows: Option to purchase: 10,000 common shares Option price per share: $33.00 Fair value per common share on date of grant: $25.40 Stock option expiration: December 31, 2028 Date when options are first exercisable: January 1, 2025 Total estimated compensation expense related to the options: $84,000 On January 1, 2023, 2,000 options were cancelled when one of the senior officers left the company. On January 1, 2026, 7,000 of the options were exercised when the fair value of the common shares was $36. The remaining stock options were allowed to expire. Assume that the entity follows ASPE and has decided not to include an estimate of forfeitures upon initial recognition of the compensation expense. Required: 1. Record all journal entries required for 2021. 2. Record all journal entries required for 2023. 3. Record the…On January 1, 2024, J. Golden Corporation granted an employee an option to purchase 8,500 shares of J. Golden's $3 par common stock at $20 per share. The options became exercisable on December 31, 2025, after the employee completed two years of service. The option was exercised on January 10, 2026. The market prices of J. Golden's stock were as follows: January 1, 2024, $31; December 31, 2025, $53; and January 10, 2026, $46. An option pricing model estimated the value of the options at $8 each on the grant date. For 2024, J. Golden should recognize compensation expense of:Settings On May 1, 2021, Roger Rabbit Company adopted a stock-option plan that granted options to key executives to purchase 8,000 shares of the company's $10 par value common stock. The options were granted on January 1, 2022 and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 5 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $189,000. All of the options were exercised during the year 2024: 3,400 on January 3 when the market price was $38, and 4,600 on May 1 when the market price was $42 a share. Prepare journal entry relating to the stock option plan for the year 2023. Assume that the employee performs services equally in 2022 and 2023. O Debit Compensation Expense $94,500; Credit Paid-in Capital-Stock Options $94,500 O Debit Compensation Expense $189,000; Credit Paid-in Capital-Stock Options $189,000 O Debit…
- On July 1, 2024, Ayayai Company adopted a stock option plan that granted options to key executives to purchase 86,000 shares of the company's $1 par value common stock. The options were granted on January 1, 2025, and were exercisable 3 years after the date of grant if the grantee was still an employee of the company. The options expired 4 years from date of grant. The option price was set at $63, and the fair value option pricing model determines the total compensation expense to be $612,000. All of the options were exercised February 1, 2028, when the market price was $75 a share. Prepare journal entries relating to the stock bption plan for the years 2024 through 2028. Assume that the employee performs services equally in 2025, 2026 and 2027. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.…On November 1, 2020, Ayayai Company adopted a stock-option plan that granted options to key executives to purchase 27,300 shares of the company’s $10 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $409,500.All of the options were exercised during the year 2023: 18,200 on January 3 when the market price was $68, and 9,100 on May 1 when the market price was $78 a share.Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023.On November 1, 2020, Sage Company adopted a stock-option plan that granted options to key executives to purchase 31,800 shares of the company’s $ 9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $ 40, and the fair value option-pricing model determines the total compensation expense to be $ 477,000.All of the options were exercised during the year 2023: 21,200 on January 3 when the market price was $ 68, and 10,600 on May 1 when the market price was $ 77 a share.Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles…
- On July 1, 2024, Flounder Company adopted a stock option plan that granted options to key executives to purchase 112,000 shares of the company's $1 par value common stock. The options were granted on January 1, 2025, and were exercisable 3 years after the date of grant if the grantee was still an employee of the company. The options expired 4 years from date of grant. The option price was set at $69, and the fair value option pricing model determines the total compensation expense to be $660,000. All of the options were exercised February 1, 2028, when the market price was $77 a share. Prepare journal entries relating to the stock option plan for the years 2024 through 2028. Assume that the employee performs services equally in 2025, 2026 and 2027. (Credit account titles are automatically indented when amount is entered. Do not incent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.…On November 1, 2025, Kingbird Company adopted a stock-option plan that granted options to key executives to purchase 25,500 shares of the company's 59 par value common stock. The options were granted on January 2, 2026, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $50, and the fair value option-pricing model determines the total compensation expense to be $382.500. All of the options were exercised during the year 2028: 17,000 on January 3 when the market price was $65, and 8,500 on May 1 when the market price was $76 a share. Prepare journal entries relating to the stock option plan for the years 2026, 2027, and 2028. Assume that the employee performs services equally in 2026 and 2027. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is…On November 1, 2020, Novak Company adopted a stock-option plan that granted options to key executives to purchase 25,500 shares of the company's $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $50, and the fair value option-pricing model determines the total compensation expense to be $382,500. All of the options were exercised during the year 2023: 17,000 on January 3 when the market price was $65, and 8,500 on May 1 when the market price was $76 a share. Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and…
- On January 1, 2023, Swifty Corp. granted an employee an option to purchase 7200 of Swifty's no par value common shares at $50 per share. The Black-Scholes option pricing model determined total compensation expense to be $200000. The option became exercisable on December 31, 2024, after the employee completed two years of service. The market prices of Swifty's shares were as follows: January 1, 2023 December 31, 2024 $38 $52 For calendar 2024, Swifty should recognize compensation expense of $86400. O $100000. O $360000. O $0.On July 1, 2019, Windsor Company adopted a stock-option plan that granted options to key executives to purchase 86,000 shares of the company’s $1 par value common stock. The options were granted on January 1, 2020, and were exercisable 3 years after the date of grant if the grantee was still an employee of the company. The options expired 4 years from date of grant. The option price was set at $63, and the fair value option-pricing model determines the total compensation expense to be $612,000.All of the options were exercised February 1, 2023, when the market price was $75 a share.Prepare journal entries relating to the stock option plan for the years 2019 through 2023. Assume that the employee performs services equally in 2020, 2021 and 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places,…On January 1, 2021, M Company granted 90,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $12. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. If unexpected turnover in 2022 caused the company to estimate that 10% of the options would be forfeited, what amount should M recognize as compensation expense for 2022? O $30,000. O $60,000. O $120,000. O $150,000.