Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2019. Larkspur Corporation granted 11.000 options to key executives. Each option allows the executive to purchase one share of Larkspur's $5 par

image text in transcribed
image text in transcribed
On January 1, 2019. Larkspur Corporation granted 11.000 options to key executives. Each option allows the executive to purchase one share of Larkspur's $5 par value common stock at a price of 521 per share. The options were exercisable within a 2 year period beginning January 1, 2021. If the grantee is still employed by the company at the time of the exercise. On the grant date.Larkspur's stock was trading at $26 per share, and a fair value option pricine del determines total compensation to be 5429.000 On May 1, 2021.8.800 options were exercised when the market price of Larkspur's stock was $2% per share. The remaining options fapsed in 2023 because executives decided not to arcke their options Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023. Creditoccount titles are automatically indented when amount senteret. Do not indent only. If no entry is required, select 'No Entry for the account titles and enter for the amounts.) Date Credit Account Titles and Explanation Debit 1.2019 No Entry Notry 1500 31.2019 Como Pot Stock 1.300 Com C 31.2020 Compensation Expense 214500 Pald-lo Capital Stock Options 214500 w1.2021 Cash 184800 Paid in Capital Stock Options 300800 Common Stock 40000 Paid in Capitale Como 41600 2023 Padin Capital Stock Option 128200 200 Paid-in Cock e Textbook and Media List of Accounts Attempts: 1 of Sused SA SL Lates

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

8th Edition

1260881237, 9781260881233

More Books

Students also viewed these Accounting questions

Question

WHAT is the scope of the task to be performed?

Answered: 1 week ago

Question

=+Identify the key components of a strategic plan

Answered: 1 week ago