LCI Cable Company grants 2.8 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 2.8 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $10 per option. Required: 1. Prepare the appropriate entry when the options are awarded on January 1, 2021. 2. Prepare the appropriate entries on December 31 of each year 2021-2024. 3. Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2023 and 2024. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Record the necessary journal entries. (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).) No Event General Journal Debit Credit Compensation expense 7X Paid-in capital - stock options 7X 1 1 2 2 14.0X Paid-in capital - stock options Compensation expense 14.0 X Raq 1 and 2 Req3 > LCI Cable Company grants 2.8 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 2.8 million of Lci $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $10 per option. Required: 1. Prepare the appropriate entry when the options are awarded on January 1, 2021. 2. Prepare the appropriate entries on December 31 of each year 2021-2024. 3. Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2023 and 2024. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2023 and 2024. (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).) Show less General Journal Debit Credit No 1 Event 1 No journal entry required X
