Rambling Man, Inc. has a stock-option plan for top management. Each stock option represents the...
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| Rambling Man, Inc. has a stock-option plan for top management. Each stock option represents the right to purchase a share of Rambling Man $1 par value common stock in the future at a price equal to the fair value of the stock at he date of the grant. On January 1, 2018, Rambling Man issued the following options: | ||||||||
| Number of options granted | 55,000 | |||||||
| Market price of stock at grant date | 42 | |||||||
| Fair value of options at grant date | 7 | |||||||
| Service period | 5 | years | ||||||
| Options expire at the end of December, 2025. | ||||||||
| During 2020, several executives terminated their employment with the company and forfeited their options, as follows: | ||||||||
| Forfeitures experienced due to employee departures | 18% | |||||||
| In 2024, the percentage of remaining options were exercised by the executives was: | 75% | |||||||
| Required: | ||||||||
| 1. | Record the journal entries for each year of the service period. | |||||||
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