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On January 1, 2019, Swifty Corporation granted 10,900 options to key executives. Each option allows the executive to purchase one share of Swifty's $5 par
On January 1, 2019, Swifty Corporation granted 10,900 options to key executives. Each option allows the executive to purchase one share of Swifty's $5 par value common stock at a price of $19 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, Swifty's stock was trading at $25 per share, and a fair value option-pricing model determines total compensation to be $433,000. On May 1, 2021,8,720 options were exercised when the market price of Swifty's stock was $30 per share. The remaining options lapsed in 2023 because executives decided not to exercise their options. Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation 0 Jan. 1.2019 No Entry No Entry Dec 31, 2019 Compensation Expense Paid-in Capital Stock Options Dec 31, 2020 Compensation Expense Paid-in Capital Stock Options May 1, 2021 Cash Paid-in Capital-Stock Options Common Stock Paid-in Capital in Excess of Par. Common Stock Jan 1, 2023 Paid-in Capital Stock Options Paid-in Capital-Expired Stock Options
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