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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...
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![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
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc1576e9-c849-48ce-8450-6aba7a1020f2%2F6182ebf2-e1e3-437b-a20e-785ee9bb8bfc%2Fq99ummi_processed.png&w=3840&q=75)
Transcribed Image Text: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
>
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