Now assume that the market price of Amazon stock on the grant date was $47 per share. Prepare the journal entries for the firstyear of the plan assuming that, rather than options, 710 shares of restricted stock were granted at the beginning of 2020. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCredit> Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share ofAmazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has5,700 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant.Exercise price for options$39Market price at grant date (January 1, 2020)$39Fair value of options at grant date (January 1, 2020)$6Service period5 years

SOLUTION A JOURNAL IS A COMPANY'S OFFICIAL BOOK IN WHICH TRANSACTIONS ARE RECORDED IN CHRONOLOGICAL…

Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 5,700 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant. Exercise price for options $39 Market price at grant date (January 1, 2020) $39 Fair value of options at grant date (January 1, 2020) $6 Service period 5 years

Assume that Amazon.com has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 5,700 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant. Exercise price for options $39 Market price at grant date (January 1, 2020) $39 Fair value of options at grant date (January 1, 2020) $6 Service period 5 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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