Burlington Company granted 10 officers on May 1, 2020, the rights to buy 1,000 shares each of S2 par common stock at $10 per share which was the market value the grant date. The rights cannot be exercised until 2021 and expire at the end of the year (2021). Compensation expense is S40,000 and is for the year 2021. Record the following Dr. Cr. May 1, 2020 the issue of the rights on the grant date Compensation expense for December 31, 2021 On July 1, 2021, 80% of the rights were exercised because the market price was $13 On December 31, 2021 10% of thew rights were not exercised as one officer left to join another company. The remaining 10% were simply not exercised and allowed to expire.
Burlington Company granted 10 officers on May 1, 2020, the rights to buy 1,000 shares each of S2 par common stock at $10 per share which was the market value the grant date. The rights cannot be exercised until 2021 and expire at the end of the year (2021). Compensation expense is S40,000 and is for the year 2021. Record the following Dr. Cr. May 1, 2020 the issue of the rights on the grant date Compensation expense for December 31, 2021 On July 1, 2021, 80% of the rights were exercised because the market price was $13 On December 31, 2021 10% of thew rights were not exercised as one officer left to join another company. The remaining 10% were simply not exercised and allowed to expire.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Burlington Company granted 10 officers on May 1, 2020, the rights to
buy 1,000 shares each
of $2 par common stock at $10 per share which was the market value
on the grant
date. The rights cannot be exercised until 2021 and expire at the end
of the year (2021).
Compensation expense is $40,000 and is for the year 2021.
Record the following
Dr.
Cr.
May 1, 2020 the issue of the rights on the grant date
Compensation expense for December 31, 2021
On July 1, 2021, 80% of the rights were exercised because the market
price was $13
On December 31, 2021 10% of thew rights were not exercised as one
officer left
to join another company. The remaining 10% were simply not
exercised and
allowed to expire.
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