On July 1, 2024, Cheyenne Financial Corporation granted 53,000 options to key executives. Each option allows the executive to purchase one share of Cheyenne's $1 par value common stock at a price of $58 per share. The options were exercisable within a 2-year period beginning July 1, 2026, if the grantee is still employed by the company at the time of the exercise. On the grant date, Cheyenne's stock was trading at $52 per share, and a fair value option-pricing model determines total compensation to be $325,000. On July 1, 2026, 37,100 options were exercised when the market price of Cheyenne's stock was $64 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. (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 amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

On July 1, 2024, Cheyenne Financial Corporation granted 53,000 options to key executives. Each option allows the executive to purchase one share of Cheyenne's $1 par value common stock at a price of $58 per share. The options were exercisable within a 2-year period beginning July 1, 2026, if the grantee is still employed by the company at the time of the exercise. On the grant date, Cheyenne's stock was trading at $52 per share, and a fair value option-pricing model determines total compensation to be $325,000. On July 1, 2026, 37,100 options were exercised when the market price of Cheyenne's stock was $64 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. (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 amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

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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