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● ● The plan entitles the CEO to purchase 12,000 common shares at $29 each, following a vesting period. The vesting period is January 1, 2023 through December 31, 2024. The exercise period is January 1, 2025 through December 31, 2027. The CEO exercises 9,400 of the stock options on June 30, 2025. The rest of the options are allowed to lapse. The shares' market prices per share are as follows: January 1, 2023 December 31, 2023 December 31, 2024 June 30, 2025 $29 $31 (a) (b) $32 $34 Crane uses an option-pricing model to value the stock options. When granted, the options are estimated to have a fair value of $6 each. This estimate remains unchanged during the vesting period. Assuming that Crane has a December 31 year end, prepare the required journal entries as at the following dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) January 1, 2023 (grant date) December 31, 2023

● ● The plan entitles the CEO to purchase 12,000 common shares at $29 each, following a vesting period. The vesting period is January 1, 2023 through December 31, 2024. The exercise period is January 1, 2025 through December 31, 2027. The CEO exercises 9,400 of the stock options on June 30, 2025. The rest of the options are allowed to lapse. The shares' market prices per share are as follows: January 1, 2023 December 31, 2023 December 31, 2024 June 30, 2025 $29 $31 (a) (b) $32 $34 Crane uses an option-pricing model to value the stock options. When granted, the options are estimated to have a fair value of $6 each. This estimate remains unchanged during the vesting period. Assuming that Crane has a December 31 year end, prepare the required journal entries as at the following dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) January 1, 2023 (grant date) December 31, 2023

FINANCIAL ACCOUNTING
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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● ● The plan entitles the CEO to purchase 12,000 common shares at $29 each, following a vesting period. The vesting period is January 1, 2023 through December 31, 2024. The exercise period is January 1, 2025 through December 31, 2027. The CEO exercises 9,400 of the stock options on June 30, 2025. The rest of the options are allowed to lapse. The shares' market prices per share are as follows: January 1, 2023 December 31, 2023 December 31, 2024 June 30, 2025 $29 $31 (a) (b) $32 $34 Crane uses an option-pricing model to value the stock options. When granted, the options are estimated to have a fair value of $6 each. This estimate remains unchanged during the vesting period. Assuming that Crane has a December 31 year end, prepare the required journal entries as at the following dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) January 1, 2023 (grant date) December 31, 2023
Transcribed Image Text:● ● The plan entitles the CEO to purchase 12,000 common shares at $29 each, following a vesting period. The vesting period is January 1, 2023 through December 31, 2024. The exercise period is January 1, 2025 through December 31, 2027. The CEO exercises 9,400 of the stock options on June 30, 2025. The rest of the options are allowed to lapse. The shares' market prices per share are as follows: January 1, 2023 December 31, 2023 December 31, 2024 June 30, 2025 $29 $31 (a) (b) $32 $34 Crane uses an option-pricing model to value the stock options. When granted, the options are estimated to have a fair value of $6 each. This estimate remains unchanged during the vesting period. Assuming that Crane has a December 31 year end, prepare the required journal entries as at the following dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) January 1, 2023 (grant date) December 31, 2023
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