question archive A company initiated a stock option plan for its senior executives on January 1, 20x1
A company initiated a stock option plan for its senior executives on January 1, 20x1
Subject:AccountingPrice: Bought3
A company initiated a stock option plan for its senior executives on January 1, 20x1. The
fair value of the plan at the date of the grant was $660,000. The vesting period ends on
December 31, 20x3. The unadjusted trial balance as of December 31, 20x2 shows a
balance of $286,700 in the Contributed Surplus – Stock Options account. At December
31, 20x2, the company estimated that 88% of options would vest.
Required – Prepare the journal entry to record compensation expense on December 31,
20x2.
