On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred: • January 1, 2018 - The company issued 324,000 options to senior management executives for the purchase of shares at $11/ share. The fair value of the options using an options pricing model is $2,268,000. Options vest over a three-year period and it is estimated that 90% of the options will vest. At the end of 2021, any unexercised options will expire. December 31, 2018 - Management now estimates that 85% of the options will vest. December 31, 2019 - Management now estimates that 80% of the options will vest. • January 1, 2021 - 108,000 options are exercised when the market price is $15/ share. Record the journal entries associated with the above transactions including any necessary entry at December 31, 2021. (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 0 for the amounts.) On January 1, 2018, Pronghorn Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred: • January 1, 2018 - The company issued 324,000 options to senior management executives for the purchase of shares at $11/ share. The fair value of the options using an options pricing model is $2,268,000. Options vest over a three-year period and it is estimated that 90% of the options will vest. At the end of 2021, any unexercised options will expire. December 31, 2018 - Management now estimates that 85% of the options will vest. December 31, 2019 - Management now estimates that 80% of the options will vest. • January 1, 2021 - 108,000 options are exercised when the market price is $15/ share. Record the journal entries associated with the above transactions including any necessary entry at December 31, 2021. (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 0 for the amounts.)
Expert Answer:
Answer rating: 100% (QA)
Answer Journal entries Date Particular Debit Grodit Jan 2018 No jowrnal en... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
Students also viewed these accounting questions
-
Sugden Company has a December 31 fiscal year end and follows IFRS. The following selected transactions are related to its property, plant, and equipment in 2014: Jan. 22 Performed an annual safety...
-
Sugden Company has a December 31 fiscal year end and follows IFRS. The following selected transactions are related to its property, plant, and equipment in 2017: Jan. 22 Performed an annual safety...
-
Sugden Company has a December 31 fiscal year end and follows IFRS. The following selected transactions are related to its property, plant, and equipment in 2021: Jan. 22 Performed an annual safety...
-
Write a critical review paper on the topic of financial management in the broad sense.
-
The president of your CPA firms largest client, a medium-size manufacturing company, advises you that the firm is about to acquire its largest supplier. Both companies have been profitable for the...
-
The greater-than operator evaluates as true when ______________. a. The right operand is greater than the left operand b. The left operand is greater than the right operand c. The right operand is...
-
Using the Internet, search for the terms "litiga- tion support" and "litigation services" and visit five or six sites that involve forensic accounting services. Also explore several sites involving...
-
The trial balance of the Garland Company shown below does not balance. Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals...
-
Improving the Financial Picture? Background Stacey Tennant pressed a fingertip to her already throbbing temple and wondered for the fourth time if she'd made a mistake in her addition. If she hadn't,...
-
Good Homes Construction Company is about to begin the construction of a large new home. The companys president, Michael Dean, is currently planning the schedule for this project. Michael has...
-
. Required 1. Calculate acquisition analysis as at 1 July 2020 2. Prepare the consolidation journal entries for 30 June 2022 3. Complete the consolidated worksheet for 30 June 2022 4. Prepare the...
-
Suppose that the three-month interest rate in Australia is 2 percent and it equals 4 percent in the United States. Suppose further that the three-month forward rate on the Australian dollar (A$) is...
-
Why are Leontiefs findings called a paradox?
-
Suppose that the current price of one British pound is $1.59 and three-month interest rates in both the United Kingdom and the United States is equal to 3 percent. If uncovered interest rate parity...
-
Since PPP rarely holds at any point in time, is there any substantive meaning to the terms overvalued or undervalued currency? Explain.
-
What is the real exchange rate? What happens to the value of the real exchange rate over time if absolute PPP always holds? How do changes in the real exchange rate indicate whether currencies are...
-
balance sheettheres no balance sheet figures Wilson's Shoe Warehouse, Incorporated, previously called DSW, sells luxurious and fashionable shoes. Its balance sheet, at August 3 , 2019 (the first...
-
The vapor pressure of the liquid NH, is measured at different temperatures. The following vapor pressure data are obtained. Temperature, K P, mmHg 217.1 223.4 234.7 588.1 Calculate the enthalpy of...
-
On January 1, 2018, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee's acquisition-date fair values, Jay concluded that the carrying value of Zee's long-...
-
In a father-son-grandson business combination, which of the following is true? a. The father company always must have its total accrual-based income computed first. b. The computation of a companys...
-
Which of the following does not represent a primary motivation for business combinations? a. Combinations are often a vehicle to accelerate growth and competitiveness. b. Cost savings can be achieved...
-
1.12 Andreas Delon's Compensation. Andreas Delon is a French citizen who has been offered the position of CEO of LakePharma, a large French pharmaceuticals firm. LakePharma produces high-quality...
-
1.11 Peng Plasma Pricing. Peng Plasma is a privately held Chinese business. It specializes in the manufacture of plasma cutting torches. Over the past eight years, it has held the Chinese renminbi...
-
1.13 Euro Virtual's Consolidated Earnings. Euro Vir- tual pays different tax rates for each of its country operations. a. What are its earnings per share in euros after deducting taxes? b. What is...
Study smarter with the SolutionInn App