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Recording Expiration of Stock Options On January 1, 2020, Holiday Inc. offered a stock option...

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Accounting

Recording Expiration of Stock Options

On January 1, 2020, Holiday Inc. offered a stock option incentive plan to a top executive. The plan provided the executive 300 stock options for Holiday Inc. $1 par value, common stock at an option price of $15 per share through the expiration date of January 1, 2026. The fair value of the options based upon an option-pricing model on January 1, 2020, is $9,000. The requisite service period is 3 years. The employees, however, did not exercise the stock options because the stock price remained below $15 per share after the vesting period.

Record the entry on January 1, 2026, for the expiration of the stock options.

Input Options:

image

Date Account Name Dr. Cr.
Jan. 1, 2026 Answer Answer Answer
Answer Answer Answer
Cash Liability-Employee Stock Purchase Plan Preferred Stock Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Restricted Stock Paid-in CapitalStock Options Paid-in Capital-Expired Stock Options Unearned CompensationEquity Compensation Expense N/A

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