On January 1, 2023, Sandhill Corporation granted 4,300 options to executives. Each option entitles the holder to purchase one share of Sandhill's common shares at $41 per share at any time after January 1, 2025. The shares' market price is $56 per share on the date of grant, and the required service period is two years. Prepare Sandhill's journal entries for January 1, 2023, and December 31, 2023 and 2024. Assume that the options' fair value as calculated using an options pricing model is $120,000. Ignore forfeitures for simplification purposes. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
On January 1, 2023, Sandhill Corporation granted 4,300 options to executives. Each option entitles the holder to purchase one share of Sandhill's common shares at $41 per share at any time after January 1, 2025. The shares' market price is $56 per share on the date of grant, and the required service period is two years. Prepare Sandhill's journal entries for January 1, 2023, and December 31, 2023 and 2024. Assume that the options' fair value as calculated using an options pricing model is $120,000. Ignore forfeitures for simplification purposes. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2023, Sandhill Corporation granted 4,300 options to executives. Each option entitles the holder to purchase one share
of Sandhill's common shares at $41 per share at any time after January 1, 2025. The shares' market price is $56 per share on the date
of grant, and the required service period is two years.
Prepare Sandhill's journal entries for January 1, 2023, and December 31, 2023 and 2024. Assume that the options' fair value as
calculated using an options pricing model is $120,000. Ignore forfeitures for simplification purposes. (Credit account titles are
automatically indented when the 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
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