Exercise 16-11

On January 1, 2018, Teal Inc. granted stock options to officers and key employees for the purchase of22,000shares of the company's $10par common stock at $26per share. The options were exercisable within a 5-year period beginning January 1, 2020, by grantees still in the employ of the company, and expiring December 31, 2024. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $318,000.

On April 1, 2019,2,200options were terminated when the employees resigned from the company. The market price of the common stock was $36per share on this date.

On March 31, 2020,13,200options were exercised when the market price of the common stock was $42per share.

Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2018, 2019, and 2020. (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.)

Exercise 16-11 On January 1 2018 Teal inc . granted stock options to officers and key employees for the purchase of 22 090 shares of the company's $10 par common stock at $26 per share . The options were exercisable within a 5 - year period beginning January 1 2020 , by grantees still in the employ of the company , and expiring December 31 2024 . The service period for this award is 2 years . Assume that the fair value option -pricing model determines total compensation expense to be $318 , 090 On March 31 , 2020 , 13 200 options were exercised when the market price of the common stock was $42 per share Prepare Journal entry entries to record Issuance of the stock options , termination of the stock options , exercise of the stock options , and charges to compensation expense , for the years ended December 31 2018 , 2019 , and 2020 . ( Credit account titles a es 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 . for the amounts . Account Titles and Explanation 1 2018 No Entry No Entry Dec . 31 , 2018 Compensation Expense Paid - In Capital - Stock Options April 1 2019 Paid in Capital - Stock Options Compensation Expense Dec . 31 , 2019 Compensation Expense Paid- In Capital - Stock Options Mar . 31 2020 Paid In Capital - Stock Options Common Stock Paid -in Capital in Excess of par - Com mon Stock Click if you would like to show Work for this question : Open Show Work