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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

FINANCIAL ACCOUNTING
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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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
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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