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Need help on my incorrect answers please Sunland Company adopted a stock-option plan on November 30,2024 , that provided that 71,600 shares of $5 par
Need help on my incorrect answers please
Sunland Company adopted a stock-option plan on November 30,2024 , that provided that 71,600 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9 a share. The market price was $12a share on November 30,2025 On January 2,2025, options to purchase 25,800 shares were granted to president Tom Winter 15,400 for services to be rendered in 2025 and 10,400 for services to be rendered in 2026 . Also on that date, options to purchase 11,400 shares were granted to vice president Michelle Bennett 5,700 for services to be rendered in 2025 and 5,700 for services to be rendered in 2026. The market price of the stock was $14 a share on January 2,2025. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option. In 2026, neither the president nor the vice president exercised their options beause the market price of the stock was below the exercise price. The market price of the stock was $9 a share on December 31,2026, when the options for 2025 services lapsed. On December 31,2027, both president Winter and vice president Bennett exercised their options for 10,400 and 5,700 shares, respectively, when the market price was $17 ashare. Prepare the necessary journal entries in 2024 when the stock-option plan was adopted, in 2025 when options were granted, in 2026 . When options lapsed, and in 2027 when options were exercised. (List all debit entries before credit entries Credit account titles ore cutomaticolly indented when omount is entered. Do not indent monually. If no entry is requined, select "No Entry" for the occount tites and. enter O for the amounts. Record entries in the order displayed in the problem statement.) Date: Account Titles and Explanation Debit Credit ov. 30,2024 No Entry () No Entry in 2,2025 No Entry No Entry (To record options granted to president.) cc31,2025 Compensation Expense Paidein Capital-Stock Ootions (To record compensation expense attributable to 2025.) Compensation fxperine Paidin Capitar-5tork Coitcone (To record compensation cexpense attributable to 2026.) ec. 31, 2026 Compensation Expanse : Paid-in Capital-Stock Options. (To record compensation expense attributable to 2026.) \begin{tabular}{|r|} \hline 54400 \\ \hline \end{tabular} (To record lapse of president's and vice president's options.) 144900 Paldvin Cabital-Stock Options Commonstock Paidin Capital in Exest of Rar-Commonstock (To record ksuance of shares.) Step by Step Solution
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