On January 1, 2020, Kingbird Corporation granted 1,800 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $67 per share on the date of grant. The period of benefit is 2 years. Prepare Kingbird’s journal entries for January 1, 2020, and December 31, 2020 and 2021
Q: On January 1, 2019, Stoner Corporation granted compensatory share options to key employees for the…
A: As per IFRS 102 Share based payments, Employees are given stock options for their services rendered…
Q: 3,000 shares of the On January 1, 2021, Wildhorse Inc. granted stock options to officers and key…
A:
Q: Prepare journal entries to record issuance of the stock options, termination of the stock options,…
A: DateAccount titles and ExplanationsDebitCreditJanuary 1,2026No Entry
Q: On May 1, 2021, Roger Rabbit Company adopted a stock-option plan that granted options to key…
A: Journal entries refers to recording of the business transaction into the books or day book of the…
Q: On January 1, 2025, Ivanhoe Company granted stock options to officers and key employees for the…
A: Introduction:- Paid in capital is the payments received from investors in exchange for an entity's…
Q: On July 1, 2019, Windsor Company adopted a stock-option plan that granted options to key executives…
A: Date Particulars Debit Credit 01-02-2020 No entry (date of grant ; total compensation cost…
Q: On January 1, 2026, Coronado Inc. granted stock options to officers and key employees for the…
A: Employee stock option refers to the option provided to employees of the company to purchase the…
Q: On November 1, 2025, Kingbird Company adopted a stock-option plan that granted options to key…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: As part of its executive compensation plan, Vertovec Inc. granted 45,000 of its no-par common shares…
A: Basic Earning Per Share :— It is calculated by dividing net Income by number of shares outstanding.…
Q: On November 1, 2020, Novak Company adopted a stock-option plan that granted options to key…
A: Journal entry is the first step in process of accounting which is recording of financial data; the…
Q: As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares…
A:
Q: On January 1, 2019, a company granted 10,000 options to key executives. Each option allows the…
A: Compensation expense = Total Compensation * 1/3 =$792,000 * 1/3 = $264,000
Q: On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 30…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: On January 1, 2020, Crane Corporation granted 5,200 options to executives. Each option entitles the…
A: Employee Stock Option: When a company grants an employee stock option (ESO), it is referring to a…
Q: On January 1, 2021, Flounder Inc. granted stock options to officers and key employees for the…
A: Please find the answers to the above questions below:
Q: On January 1, 2025 (the date of grant), Waterway Corporation issues 1,800 shares of restricted stock…
A: A journal entry documents a business transaction in an organization's accounting system. The…
Q: t to forfeiture if employment is terminated within three years. Vertovec’s common shares have a…
A: fair market value per share $9 No. of share granted 81000 Total compensation offered $729,000…
Q: Prepare journal entries to record issuance of the stock options, termination of the stock options,…
A: To give assurance to the employees & encourage them organisation enables an option to provide…
Q: On January 1, 2021, Crane Company granted stock options to officers and key employees for the…
A: Stock options: A kind of grant remitted to the workforce of an organization which permits them to…
Q: n January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 25…
A: Restricted stock These stocks are the one that have conditions attached to it which are required to…
Q: January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 50…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS General Journal Date Account Title and…
Q: On January 1, 2025, Splish Corporation granted 1,800 shares of restricted-stock units. The par value…
A: Answer:- Restricted stock refers to non-transferable shares that are given to employees as part of…
Q: 1. X-Tech Company has 8 employees who earn $900 in total for each day worked. They are paid each…
A: In this question, we are required to prepare an adjusting entry for the end of December for the…
Q: On November 1, 2020, Sweet Company adopted a stock-option plan that granted options to key…
A: Stock Option Plan: A stock option plan is a plan under which the company grants stock options to…
Q: Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: vrited On January 1, 2021, King's X Corp. granted stock options to officers and key employees for…
A: Employee Stock Options: The employee stock options are the compensation plan given by the companies…
Q: On January 1, 2021, Tamarisk Inc. granted stock options to officers and key employees for the…
A: Journal entries recording is the first step of accounting cycle process, in which atleast one…
Q: On January 1, 2021, Sweet Inc. granted stock options to officers and key employees for the purchase…
A: Solution:Journal entry:Date Account titles & ExplanationDebit $Credit $Jan.1,2021No journal…
Q: the dusty corporation began business on January 1, 2020. the corporate charter authorizes issuance…
A: Journal entries are the entries to be recorded in the accounting of the business for all the…
Q: On July 1, 2019, Sunland Financial Corporation granted 50,000 options to key executives. Each option…
A: Date Account Titles and Explanation Debit Credit July 1, 2019 No Entry on grant date…
Q: Allied Paper Products, Incorporated offers a restricted stock award plan to its vice presidents. On…
A: 1)Total compensation cost pertaining to restricted shares is the market price of shares offered as…
Q: On January 1, 2021, Flounder Inc. granted stock options to officers and key employees for the…
A: Journal entries refers to the entries which are made at the end of the period or year and it records…
Q: On November 1, 2020, Sarasota Company adopted a stock-option plan that granted options to key…
A: Journal entry: Journal entry refers to an entry that is made to record the transactions which are…
Q: Darius Inc. granted 200,000 stock options to its employees. The options expire 10 years after the…
A: Employee stock options are offered by companies to their employees as equity compensation plans.
Q: On January 1, 2021, Windsor Inc. granted stock options to officers and key employees for the…
A: The calculations are:
Q: Prepare journal entries relating to the stock option plan for the years 2020, 2021, and 2022. Assume…
A: Introduction: Shares are units of equity ownership in a firm. For certain businesses, shares exist…
Q: On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of…
A: The objective of this question is to calculate the compensation expense that Jingrong Corporation…
Q: Subject: accounting On January 1, 2019, QRS Company granted 80,000 stock options to certain…
A: The total stock compensation expense to be recorded by a company is computed by multiplying the fair…
Q: Binomial pricing model and estimated the fair value of each of the options at $10. What amount…
A: Expected options to be vested = 86000*94% = 80840 Fair value of the option : 10 Vesting…
Q: On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of…
A: An employee stock option (ESO) is a type of equity compensation granted by companies to their…
Q: On January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 30…
A: 1. Journal entry to record compensation expense on December 31, 2024:On December 31, 2024, Vijay…
Q: In connection with a stock option plan for the benefit of key employees, Ward Corp. intends to…
A: Stock option plan refers to a program offered by companies that grant employees the right to…
Q: On January 1, 2020, AllClear Company issues 2,000 shares of restricted stock to its CEO, Jason…
A: Step 1 If share based plan is cancelled during the vesting period, then entity should written off…
Q: On December 31, 2016, Ferris Corporation granted 10,000 shares of its $1 par value common stock to…
A: Compensation expense = Exercise / Strike price per option x Number of Options = $40 x 10,000 =…
Q: On January 1. 2
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Prepare journal entries relating to the stock option plan for the years 2024 through 2028. Assume…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On January 1, 2024, Donnelly Company granted 97,000 stock options to certain executives. The options…
A: The objective of this question is to calculate the compensation expense that Donnelly Company should…
On January 1, 2020, Kingbird Corporation granted 1,800 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $67 per share on the date of grant. The period of benefit is 2 years.
Prepare Kingbird’s
Journal entries refer to the recording of transactions in an appropriate way. With the help of journal entry, the management can sort all the transactions according to the related account. Basically, it is a sum of debit and credit.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- On November 1, 2025, Columbo Company adopted a stock-option plan that granted options to key executives to purchase 30,000 shares of the company's $10 par value common stock. The options were granted on January 2, 2026, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $450,000. All of the options were exercised during the year 2029: 20,000 on January 3 when the market price was $67, and 10,000 on May 1 when the market price was $77 a share. Prepare journal entries relating to the stock option plan for the years 2026, 2027, and 2028. Assume that the employee performs services equally in 2026 and 2027. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is…On July 1, 2024, Bonita Company adopted a stock option plan that granted options to key executives to purchase 94,000 shares of the company's $1 par value common stock. The options were granted on January 1, 2025, and were exercisable 3 years after the date of grant if the grantee was still an employee of the company. The options expired 4 years from date of grant. The option price was set at $63, and the fair value option pricing model determines the total compensation expense to be $714,000. All of the options were exercised February 1, 2028, when the market price was $77 a share. Prepare journal entries relating to the stock option plan for the years 2024 through 2028. Assume that the employee performs services equally in 2025, 2026 and 2027. (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. List all debit entries before credit entries.…On January 1, 2019, Flounder Corporation granted 9,400 options to key executives. Each option allows the executive to purchase one share of Flounder’s $5 par value common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Flounder’s stock was trading at $26 per share, and a fair value option-pricing model determines total compensation to be $404,000.On May 1, 2021, 7,520 options were exercised when the market price of Flounder’s stock was $30 per share. The remaining options lapsed in 2023 because executives decided not to exercise their options.Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023. (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…
- On January 1, 2018, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 parcommon shares to key personnel, subject to forfeiture if employment is terminated within three years. After therecipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date,the shares had a market price of $2.50 per share.Required:1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2018.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2018.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2019.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2020.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares atDecember 31, 2020.Concord Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established price of $33 (also market price) on December 31, 2021, on 37,700 SARs. The date of grant is December 31, 2021, and the required employment (service) period is 4 years. President Davis exercises all of the SARS in 2027. The fair value of the SARS is estimated to be $6 per SAR on December 31, 2022; $10 on December 31, 2023; $14 on December 31, 2024; $6 on December 31, 2025; and $17 on December 31, 2026. (a) Prepare a 5-year (2022-2026) schedule of compensation expense pertaining to the 37,700 SARS granted president Davis. (If the compensation decreases from prior year enter the amount as a negative number in the table eg -25,000 or (25,000)) Cumulative Compensation Recognizable Date 12/31/22 $ 12/31/23 12/31/24 12/31/25 Fair Value Percentage Accrued % $ CompensPrepare any necessary journal entries for Red Robin's stock-based compensation plan for 2022. Red Robin granted 67,200 employee stock options on January 1, 2021. The options give the employees the right to acquire 67,200 shares of Red Robin's common stock for an exercise price of $21.65 per share. The market price on the date of grant was $21.65. The required vesting period is 2 years, so the options vest on December 31 of the current year (2022). The options have a 7-year expiration period. Additional information is below: Fair Value Actual Forfeitures Estimated Forfeiture Rate 12/31/2021 $5.65 Total compensation expense at fair value Percentage of Options Expected to vest Expected total compensation expense Cumulative rate of amortization Cumulative compensation expense Expense recognized in prior years Current year compensation expense 5% 12/31/2022 $6.25 850 4% 12/31/2021 389,760 95% 370,272 50% 185,136 185,136 12/31/2022 389,760 96% 374,170 100% 374,170 185,136 189,034
- On January 1, 2021, Sarasota Inc. granted stock options to officers and key employees for the purchase of 23,000 shares of the company’s $10 par common stock at $27 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $359,400.On April 1, 2022, 2,300 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, 2023, 13,800 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, 2021, 2022, and 2023. (Credit account titles…Man of War Company adopted a stock-option plan on April 30, 2019, that provided that 500,000 shares of $10 par value stock be designated as available for the granting of options to officers of the corporation at a price of $26 a share. The market price was $20 a share on April 30, 2019.On January 2, 2020, options to purchase 40,000 shares were granted to president—15,000 for services to be rendered in 2020 and 25,000 for services to be rendered in 2021. Also on that date, options to purchase 26,000 shares were granted to chief financial officer—10,000 for services to be rendered in 2020 and 16,000 for services to be rendered in 2021. The market price of the stock was $23 a share on January 2, 2020. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $3.20 per option. In 2021, neither the president nor the chief financial officer exercised their options because the market price…HELP ME
- Modern Corporation granted 95,000 stock options to certain executives on January 1, 2022. The options are exercisable no sooner than December 31, 2024, and expire on January 1, 2028. Each option can be exercised to acquire one share of $1 par common stock for $11. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. How much compensation expense should Modern recognize in 2022 as a result of this stock option grant?On January 1, 2020 (the date of grant), Windsor Corporation issues 2,300 shares of restricted stock to its executives. The fair value of these shares is $51,000, and their par value is $11,500. The stock is forfeited if the executives do not complete 3 years of employment with the company. Prepare journal entries for January 1, 2020, and on December 31, 2020, assuming the service period is 3 years. (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 1/1/20 12/31/20 Account Titles and Explanation Debit CreditOn January 1, 2024, Swifty Corporation granted 9,100 options to key executives. Each option allows the executive to purchase one share of Swifty's $5 par value common stock at a price of $21 per share. The options were exercisable within a 2-year period beginning January 1, 2026, if the grantee is still employed by the company at the time of the exercise. On the grant date, Swifty's stock was trading at $26 per share, and a fair value option-pricing model determines total compensation to be $402,000. On May 1, 2026, 7,280 options were exercised when the market price of Swifty's stock was $30 per share. The remaining options lapsed in 2028 because executives decided not to exercise their options. Prepare the necessary journal entries related to the stock option plan for the years 2024 through 2028. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for…
