a.
To prepare: The journal entriesrecording of compensation expense over the vesting period.
Giveninformation:
Number of shares as an option is10,000.
Par value of common stock is $2.
Exercise price per share is $18.
Vesting time period is 2 years.
Estimated fair value at the grant date is $250,000
Initial vesting probability is 100%.
b.
To prepare: The journal entries for recording of compensation expense over the vesting period.
Given information:
Number of shares as an option is 10,000.
Par value of common stock is $2.
Exercise price per share is $18.
Vesting time period is 2 years.
Estimated fair value at the grant date is $250,000
Initial vesting probability of year 1 is 100%.
Vesting probability of year 2 is 60%.
c.
The recording of expiration of all options and journal entries related to it.
Given information:
Number of shares as an option is 10,000
Par value of common stock is $2.
Exercise price per share is $18.
Vesting time period is 2 years.
Estimated fair value at the grant date is $250,000
Initial vesting probability of year 1 is 100%.
Vesting probability of year 2 is 60%.
d.
The recording of compensation expense over the vesting period and journal entries.
Given information:
Number of shares as an option is 10,000.
Par value of common stock is $2.
Exercise price per share is $18.
Vesting time period is 2 years.
Estimated fair value at the grant date is $250,000
Initial vesting probability of year 1 is 80%.
Vesting probability of year 2 is 80%.

Want to see the full answer?
Check out a sample textbook solution
Chapter 19 Solutions
EBK INTERMEDIATE ACCOUNTING
- At the end of the current year, the owners' equity in Marino Corp. is $425,000. During the year, the assets of the business increased by $95,000, and the liabilities increased by $130,000. What must owners' equity at the beginning of the year have been?arrow_forwardGeneral accounting questionarrow_forwardWhat is the operating leverage?arrow_forward
- Please provide answer this general accounting questionarrow_forwardBlue Wave Enterprises had revenues of $420,000, expenses of $275,000, and dividends of $60,000. When Income Summary is closed to Retained Earnings, What is the amount of the debit or credit to Retained Earnings? A. credit of $145,000 B. debit of $145,000 C. credit of $85,000 D. debit of $85,000arrow_forwardI need answer financial accounting questionarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





