Class Specificatio WileyPLUS X Bb Ch 16 WP - 2019 myStanState Port + https://edugen.wileyplus.com/edugen/student/mainfr.uni ment CALCULATOR NEXT FULL SCREEN PRINTER VERSION BACK Exercise 16-11 On January 1, 2018, Sandhill Inc. granted stock options to officers and key employees for the purchase of 21,000 shares of the company's $10 par common stock at $24 per share. The options were exercisable within a 5-year period beginning January 1, 2020, by grantees still in the employ of the company, and expiring December 31, 2024. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $361,400. On April 1, 2019, 2,100 options were terminated when the employees resigned from the company. The market price of the common stock was $35 per share on this date. On March 31, 2020, 12,600 options were exercised when the market price of the common stock was $41 per share. 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, 2018, 2019, and 2020. (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.) Account Titles and Explanation Debit Credit Date Jan. 1, 2018 No Entry 0 No Entry Dec. 31, 2018 Compensation Expense Paid-in Capital-Stock Options Paid-in Capital-Expired Stock Options April 1, 2019 V 11:30 PM e to search 9/30/2019 Print K4 Inse Screen F12 F9 F11 F10 F8 F7 F6 F5 F3 F4 & ( $ # 7 0 6 4 3 P Y U R E L K J H G F D +II T
Class Specificatio WileyPLUS X Bb Ch 16 WP - 2019 myStanState Port + https://edugen.wileyplus.com/edugen/student/mainfr.uni ment CALCULATOR NEXT FULL SCREEN PRINTER VERSION BACK Exercise 16-11 On January 1, 2018, Sandhill Inc. granted stock options to officers and key employees for the purchase of 21,000 shares of the company's $10 par common stock at $24 per share. The options were exercisable within a 5-year period beginning January 1, 2020, by grantees still in the employ of the company, and expiring December 31, 2024. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $361,400. On April 1, 2019, 2,100 options were terminated when the employees resigned from the company. The market price of the common stock was $35 per share on this date. On March 31, 2020, 12,600 options were exercised when the market price of the common stock was $41 per share. 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, 2018, 2019, and 2020. (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.) Account Titles and Explanation Debit Credit Date Jan. 1, 2018 No Entry 0 No Entry Dec. 31, 2018 Compensation Expense Paid-in Capital-Stock Options Paid-in Capital-Expired Stock Options April 1, 2019 V 11:30 PM e to search 9/30/2019 Print K4 Inse Screen F12 F9 F11 F10 F8 F7 F6 F5 F3 F4 & ( $ # 7 0 6 4 3 P Y U R E L K J H G F D +II T
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 18E: Trading Securities Pear Investments began operations in 2020 and invests in securities classified as...
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Transcribed Image Text:Class Specificatio
WileyPLUS
X
Bb Ch 16 WP - 2019
myStanState Port
+
https://edugen.wileyplus.com/edugen/student/mainfr.uni
ment
CALCULATOR
NEXT
FULL SCREEN
PRINTER VERSION
BACK
Exercise 16-11
On January 1, 2018, Sandhill Inc. granted stock options to officers and key employees for the purchase of 21,000 shares of
the company's $10 par common stock at $24 per share. The options were exercisable within a 5-year period beginning
January 1, 2020, by grantees still in the employ of the company, and expiring December 31, 2024. The service period for this
award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $361,400.
On April 1, 2019, 2,100 options were terminated when the employees resigned from the company. The market price of the
common stock was $35 per share on this date.
On March 31, 2020, 12,600 options were exercised when the market price of the common stock was $41 per share.
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, 2018, 2019, and 2020. (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.)
Account Titles and Explanation
Debit
Credit
Date
Jan. 1, 2018
No Entry
0
No Entry
Dec. 31, 2018
Compensation Expense
Paid-in Capital-Stock Options
Paid-in Capital-Expired Stock Options
April 1, 2019
V
11:30 PM
e to search
9/30/2019
Print
K4
Inse
Screen
F12
F9
F11
F10
F8
F7
F6
F5
F3
F4
&
(
$
#
7
0
6
4
3
P
Y U
R
E
L
K
J
H
G
F
D
+II
T
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