Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019 At that time, it grants each executive the right to purchase 120 shares of its $5 par common stock at $40 per share after a 3 year service period The value of each option is estimated to be $8 50 on the grant date Based on its average employee turnover rate each year, Nadal expects that 2 executives will not vest in the plan At the end of 2021, Nadal confirms that the actual turnover was the same as expected On January 5, 2022, 5 executives exercise their options Required Prepare Nadals journal entries for 2019 through 2022 in regard to its compensatory share option plan CHART OF ACCOUNTS Nadal Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 314 Paid in Capital from Share Options 320 Additional Paid in Capital on Common Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 522 Compensation Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense Prepare Nadals journal entry on December 31 for 2019 in regard to its compensatory share option plan General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT 1 2 Prepare Nadals journal entry on December 31 for 2020 in regard to its compensatory share option plan General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT 1 2 Prepare Nadals journal entry on December 31 for 2021 in regard to its compensatory share option plan General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT 1 2 Prepare Nadals journal entry on January 5 for 2022 in regard to its compensatory share option plan General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT 1 2 3 4

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Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At that time, it grants each executive the right

Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At that time, it grants each executive the right to purchase 120 shares of its $5 par common stock at $40 per share after a 3-year service period. The value of each option is estimated to be $8.50 on the grant date. Based on its average employee turnover rate each year, Nadal expects that 2 executives will not vest in the plan. At the end of 2021, Nadal confirms that the actual turnover was the same as expected. On January 5, 2022, 5 executives exercise their options.

Required:

Prepare Nadals journal entries for 2019 through 2022 in regard to its compensatory share option plan.

CHART OF ACCOUNTS

Nadal Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
314	Paid-in Capital from Share Options
320	Additional Paid-in Capital on Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
522	Compensation Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense