i will thumbs up for correct answers and fast response. answer all parts. part 1, part 2, part 3a and part 3b. label answers clearly:)
On January 1, 2021, Adams-Meneke Corporation granted 120 million Incentive stock options to division managers, each permitting holders to purchase one share of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, currently $46 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Management's policy is to estimate forfeitures. No forfeltures are anticipated. Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options on January 1, 2021. 2. Prepare the appropriate Journal entry to record compensation expense on December 31, 2021. 3. Unexpected turnover during 2022 caused an estimate of the forfeiture of 5% of the stock options. Prepare the appropriate journal entry(s) on December 31, 2022 and 2023 in response to the new estimate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total compensation cost pertaining to the options on January 1, 2021. (Enter your answer in millions (I.e., 10,000,000 should be entered as 10).) Total compensation cost million Required 1 Required 2 Required 3 Prepare the appropriate journal entry to record compensation expense on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place (I.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 Record compensation expense on December 31, 2021. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Required 1 Required 2 Required 3 Unexpected turnover during 2022 caused an estimate of the forfelture of 5% of the stock options. Prepare the appropriate journal entry(s) on December 31, 2022 and 2023 in response to the new estimate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round Intermediate calculations. Enter your answers in millions rounded to 1 decimal places (T.e., 5,500,000 should be entered as 5.50).) Show less View transaction list Journal entry worksheet 1 2 Record the compensation expense. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2022 Required 1 Required 2 Required 3 Unexpected turnover during 2022 caused an estimate of the forfeiture of 5% of the stock options. Prepare the appropriate journal entry(s) on December 31, 2022 and 2023 In response to the new estimate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round Intermediate calculations. Enter your answers in millions rounded to 1 decimal places (ie., 5,500,000 should be entered as 5.50).) Show less View transaction list Journal entry worksheet
