On January 1, 2020, Sandhill Corporation granted 4,700 options to executives. Each option entitles the holder to purchase one share of Sandhill's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $63 per share on the date of grant. The fair value of the options at the grant date is $142,000. The period of benefit is 2 years. Prepare Sandhill's journal entries for January 1, 2020, and December 31, 2020 and 2021. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit

On January 1, 2020, Sandhill Corporation granted 4,700 options to executives. Each option entitles the holder to purchase one share of Sandhill's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $63 per share on the date of grant. The fair value of the options at the grant date is $142,000. The period of benefit is 2 years. Prepare Sandhill's journal entries for January 1, 2020, and December 31, 2020 and 2021. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit

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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