Question Details

[solution] » Sheridan Company adopted a stock-option plan on November 30,

Brief item decscription

Step-by-step solution file


Item details:

Sheridan Company adopted a stock-option plan on November 30,
More:

Sheridan Company adopted a stock-option plan on November 30, 2016, that provided that 71,600 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9 a share. The market price was $12 a share on November 30, 2017.


On January 2, 2017, options to purchase 25,800 shares were granted to president Tom Winter?15,400 for services to be rendered in 2017 and 10,400 for services to be rendered in 2018. Also on that date, options to purchase 11,400 shares were granted to vice president Michelle Bennett?5,700 for services to be rendered in 2017 and 5,700 for services to be rendered in 2018. The market price of the stock was $14 a share on January 2, 2017. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option.


In 2018, neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market price of the stock was $9 a share on December 31, 2018, when the options for 2017 services lapsed.


On December 31, 2019, both president Winter and vice president Bennett exercised their options for 10,400 and 5,700 shares, respectively, when the market price was $17 a share.


Prepare the necessary journal entries in 2016 when the stock-option plan was adopted, in 2017 when options were granted, in 2018 when options lapsed, and in 2019 when options were exercised.(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.

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Feb 21, 2020

PRICE: $24

Solution~000304263.zip (18.37 KB)

Buy this answer for only: $24

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now