On July 1, 2019, Sunland Financial Corporation granted 50,000 options to key executives. Each option allows the executive to purchase one share of Sunland’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, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Sunland’s stock was trading at $48 per share, and a fair value option-pricing model determines total compensation to be $338,000. On July 1, 2021, 35,000 options were exercised when the market price of Sunland’s stock was $68 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 amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
On July 1, 2019, Sunland Financial Corporation granted 50,000 options to key executives. Each option allows the executive to purchase one share of Sunland’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, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Sunland’s stock was trading at $48 per share, and a fair value option-pricing model determines total compensation to be $338,000. On July 1, 2021, 35,000 options were exercised when the market price of Sunland’s stock was $68 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 amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 7E
Related questions
Question
On July 1, 2019, Sunland Financial Corporation granted 50,000 options to key executives. Each option allows the executive to purchase one share of Sunland’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, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Sunland’s stock was trading at $48 per share, and a fair value option-pricing model determines total compensation to be $338,000.
On July 1, 2021, 35,000 options were exercised when the market price of Sunland’s stock was $68 per share. The remaining options lapsed in 2023 because executives decided not to exercise their options.
Prepare the necessaryjournal 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 amounts.)
On July 1, 2021, 35,000 options were exercised when the market price of Sunland’s stock was $68 per share. The remaining options lapsed in 2023 because executives decided not to exercise their options.
Prepare the necessary
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Date
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Account Titles and Explanation
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Debit
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Credit
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choose a transaction date
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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choose a transaction date
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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choose a transaction date
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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choose a transaction date
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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choose a transaction date
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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