On November 1, 2020, Sweet Company adopted a stock-option plan that granted options to key executives to purchase 31,800 shares of the company’s $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $477,000. All of the options were exercised during the year 2023: 21,200 on January 3 when the market price was $68, and 10,600 on May 1 when the market price was $78 a share. Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 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 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount choose a transaction date enter an account title to record the transaction on May 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2020

On November 1, 2020, Sweet Company adopted a stock-option plan that granted options to key executives to purchase 31,800 shares of the company’s $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $477,000. All of the options were exercised during the year 2023: 21,200 on January 3 when the market price was $68, and 10,600 on May 1 when the market price was $78 a share. Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 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 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 3, 2020 enter a debit amount enter a credit amount choose a transaction date enter an account title to record the transaction on May 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2020

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 3C

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choose a transaction date
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount