Help Save & Exit Hua Xin Services offered an incentive stock option plan to its employees. On January 1, 2024, options were granted for 69,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2027, and expire December 31, 2028. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record the exercise of 90% the options on April 15, 2027, when the market price of the stock was $8? Multiple Choice Account Title Cash Paid-in capital-stock options Compensation expense Common stock Paid-in capital-excess of par Debit 310,500 Credit 62,100 124,200 62,100 434,700 Account Title Cash Paid-in capital-stock options Common stock Paid-in capital-excess of par Debit 434,700 62,100 Credit 62,100 434,700 Account Title Cash Debit 310,500 Credit Paid-in capital-stock options 62,100 Common stock 69,000 Paid-in capital-excess of par 303,600
Help Save & Exit Hua Xin Services offered an incentive stock option plan to its employees. On January 1, 2024, options were granted for 69,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2027, and expire December 31, 2028. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record the exercise of 90% the options on April 15, 2027, when the market price of the stock was $8? Multiple Choice Account Title Cash Paid-in capital-stock options Compensation expense Common stock Paid-in capital-excess of par Debit 310,500 Credit 62,100 124,200 62,100 434,700 Account Title Cash Paid-in capital-stock options Common stock Paid-in capital-excess of par Debit 434,700 62,100 Credit 62,100 434,700 Account Title Cash Debit 310,500 Credit Paid-in capital-stock options 62,100 Common stock 69,000 Paid-in capital-excess of par 303,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hua Xin Services offered an incentive stock option plan to its employees. On January 1, 2024, options were granted for 69,000 $1 par common shares. The exercise price equals the $5 market price of the common
stock on the grant date. The options cannot be exercised before January 1, 2027, and expire December 31, 2028. Each option has a fair value of $1 based on an option pricing model.
Which is the correct entry to record the exercise of 90% the options on April 15, 2027, when the market price of the stock was $8?
Multiple Choice
Account Title
Cash
Paid-in capital-stock options
Compensation expense
Common stock
Paid-in capital-excess of par
Debit
310,500
Credit
62,100
124,200
62,100
434,700
Account Title
Cash
Paid-in capital-stock options
Common stock
Paid-in capital-excess of par
Debit
434,700
62,100
Credit
62,100
434,700
Account Title
Cash
Debit
310,500
Credit
Paid-in capital-stock options
62,100
Common stock
69,000
Paid-in capital-excess of par
303,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84424e19-9176-4f58-bc03-0d3794c2aca2%2F7313d68a-486b-4200-8ed7-d25b4dce71f2%2F7eocydm_processed.png&w=3840&q=75)
Transcribed Image Text:Help
Save & Exit
Hua Xin Services offered an incentive stock option plan to its employees. On January 1, 2024, options were granted for 69,000 $1 par common shares. The exercise price equals the $5 market price of the common
stock on the grant date. The options cannot be exercised before January 1, 2027, and expire December 31, 2028. Each option has a fair value of $1 based on an option pricing model.
Which is the correct entry to record the exercise of 90% the options on April 15, 2027, when the market price of the stock was $8?
Multiple Choice
Account Title
Cash
Paid-in capital-stock options
Compensation expense
Common stock
Paid-in capital-excess of par
Debit
310,500
Credit
62,100
124,200
62,100
434,700
Account Title
Cash
Paid-in capital-stock options
Common stock
Paid-in capital-excess of par
Debit
434,700
62,100
Credit
62,100
434,700
Account Title
Cash
Debit
310,500
Credit
Paid-in capital-stock options
62,100
Common stock
69,000
Paid-in capital-excess of par
303,600
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