Question
On January 1, 2020, Steele Inc. granted 20,000 stock options to the executives of the company. Each option allows an executive to purchase one share
On January 1, 2020, Steele Inc. granted 20,000 stock options to the executives of the company. Each option allows an executive to purchase one share of Steele Inc.s common shares at a price of $10 per share.
The options can only be exercised beginning January 1, 2022 by executives who were still employed with the company. The options expire January 1, 2024.
On the grant date, January 1, 2020, the shares of Steele Inc. were trading at $13. A fair value pricing model determined total compensation to be $180,000.
Required: Prepare journal entries for the following transactions.
January 1, 2020 Issuance of the options
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December 31, 2020 Year-end adjusting entry
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December 31, 2021 Year-end adjusting entry
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June 10, 2023 One-quarter of the options were exercised.
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Beyond Compliance Design Of A Quality System Tools And Templates For Integrating Auditing Perspectives
Authors: Janet Bautista Smith, Robert Alvarez
1st Edition
1951058232, 978-1951058234
