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Second Time Around Clothing has a stock option incentive plan for its top managers. It includes the following terms: Each manager who qualifies receives the
Second Time Around Clothing has a stock option incentive plan for its top managers. It includes the following terms:
Each manager who qualifies receives the right to buy common shares at an option price of $ per share.
The option is nontransferable and expires five years from the issuance date.
The option cannot be exercised until three years from the issuance date.
Management assumes that there will be no forfeitures as they do not expect any of its top managers to leave.
Manager Ailton was given such an option award on September He exercised of his options on September An option pricing model indicated that the options were worth $ on September The market value of common shares was $ on September
Prepare all related journal entries for the stock option plan for the years to inclusive.
Assume that Second Time Around Clothing follows ASPE and prepares its financial statements on September and the first year's expense with regards to the option is recorded on September
Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format ddmmm ie January would be Jan
Please make sure your final answers are accurate to decimal places.
General JournalPage GDateAccountExplanationPRDebitCredit
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