On January 1, 2021, King's X Corp. granted stock options to officers and key employees for the purchase of 45,000 shares of the company's $10 par common stock at $27 per share. The options were exercisable within a 4-year period beginning January 1, 2026 by grantees still in the employ of the company, and had an expiration date of December 31, 2029. The vesting (service) period for this award was 5 years. Assume that a valid option pricing model determined the fair value of each option at the grant date to be $18. The fair market value of King's X stock on the grant date was $30 per share. On April 20, 2026, 32,000 options were exercised when the market price of the common stock was $42.50 per share. The remaining 13,000 options were never exercised. Required: Prepare any and all required journals entries related to the stock options for the following dates: January 1, 2021 December 31, 2021 December 31, 2022 April 20, 2026 ● December 31, 2029 ●
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- On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.On January 1, 2021, Cullumber Inc. granted stock options to officers and key employees for the purchase of 22,000 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, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $333,000.On April 1, 2022, 2,200 options were terminated when the employees resigned from the company. The market price of the common stock was $33 per share on this date.On March 31, 2023, 13,200 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, 2021, 2022, and 2023. (Credit account titles…On January 1, 2021, Flounder Inc. granted stock options to officers and key employees for the purchase of 24,000 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, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $359,400. On April 1, 2022, 2,400 options were terminated when the employees resigned from the company. The market price of the common stock was $34 per share on this date. On March 31, 2023, 14,400 options were exercised when the market price of the common stock was $39 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, 2021, 2022, and 2023. (Credit account…
- On January 1, 2021, Flounder Inc. granted stock options to officers and key employees for the purchase of 22,000 shares of the company’s $10 par common stock at $26 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $318,000.On April 1, 2022, 2,200 options were terminated when the employees resigned from the company. The market price of the common stock was $36 per share on this date.On March 31, 2023, 13,200 options were exercised when the market price of the common stock was $42 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, 2021, 2022, and 2023.On January 1, 2021, Tamarisk 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, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $ 343,000.On April 1, 2022, 2,100 options were terminated when the employees resigned from the company. The market price of the common stock was $ 36 per share on this date.On March 31, 2023, 12,600 options were exercised when the market price of the common stock was $ 42 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, 2021, 2022, and 2023. (Credit account…rated On January 1, 2021, King's X Corp. granted stock options to officers and key employees for the purchase of 45,000 shares of the company's $10 par common stock at $27 per share. The options were exercisable within a 4-year period beginning January 1, 2026 by grantees still in the employ of the company, and had an expiration date of December 31, 2029. The vesting (service) period for this award was 5 years. Assume that a valid option pricing model determined the fair value of each option at the grant date to be $18. The fair market value of King's X stock on the grant date was $30 per share. On April 20, 2026, 32,000 options were exercised when the market price of the common stock was $42.50 per share. The remaining 13,000 options were never exercised. Required: Prepare any and all required journals entries related to the stock options for the following dates: January 1, 2021 . December 31, 2021 ● December 31, 2022 April 20, 2026 December 31, 2029 ●
- On January 1, 2026, Vaughn Inc. granted stock options to officers and key employees for the purchase of 23,000 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, 2028, by grantees still in the employ of the company, and expiring December 31, 2032. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $337,000. On April 1, 2027. 2,300 options were terminated when the employees resigned from the company. The market price of the common stock was $34 per share on this date. On March 31, 2028, 13,800 options were exercised when the market price of the common stock was $40 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, 2026 2027, and 2028. (List all debit entries…On January 1, 2021, Sarasota Inc. granted stock options to officers and key employees for the purchase of 23,000 shares of the company’s $10 par common stock at $27 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $359,400.On April 1, 2022, 2,300 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, 2023, 13,800 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, 2021, 2022, and 2023. (Credit account titles…On January 1, 2026, Sheffield 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, 2028, by grantees still in the employ of the company, and expiring December 31, 2032. 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, 2027, 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, 2028, 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, 2026, 2027, and 2028. (List all debit…
- On January 1, 2026, Windsor 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 $25 per share. The options were exercisable within a 5-year period beginning January 1, 2028, by grantees still in the employ of the company, and expiring December 31, 2032. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $328,400. On April 1, 2027,2,100 options were terminated when the employees resigned from the company. The market price of the common stock was $36 per share on this date. On March 31, 2028 12,600 options were exercised when the market price of the common stock was $40 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, 2026, 2027, and 2028. (List all debit entries…On January 1, 2021, Wildhorse Inc. granted stock options to officers and key employees for the purchase of 23,000 shares of the company's $10 par common stock at $25 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $330,600. On April 1, 2022, 2,300 options were terminated when the employees resigned from the company. The market price of the common stock was $36 per share on this date. On March 31, 2023, 13,800 options were exercised when the market price of the common stock was $39 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, 2021, 2022, and 2023. (Credit account…On January 1, 2021, Titania Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company's $10 par common stock at $25 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $350,000. On April 1, 2022, 2,000 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, 2023, 12,000 options were exercised when the market price of the common stock was $40 per share. Instructions 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, 2021, 2022, and 2023.