Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2018, wildhorse property management

On January 1, 2018, Wildhorse Property Management Inc. introduced a stock-based compensation plan for its...

80.2K

Verified Solution

Question

Accounting

On January 1, 2018, Wildhorse Property Management Inc. introduced a stock-based compensation plan for its senior executives. The company has a December 31, 2018 year-end and the following events occurred:

January 1, 2018 The company issued 339,000 options to senior management executives for the purchase of shares at $9 / share. The fair value of the options using an options pricing model is $2,034,000. Options vest over a three-year period and it is estimated that 90% of the options will vest. At the end of 2021, any unexercised options will expire.
December 31, 2018 Management now estimates that 85% of the options will vest.
December 31, 2019 Management now estimates that 80% of the options will vest.
January 1, 2021 113,000 options are exercised when the market price is $14 / share.

Record the journal entries associated with the above transactions including any necessary entry at December 31, 2021.

January 1, 2018 (2 entries)

December 31, 2018 (2 entries)

December 31, 2019 (2 entries)

December 31, 2020 (2 entries)

January 1, 2021 (3 entries)

December 31, 2021 (2 entries)

Please show all calculations

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students