2011 no journal entry would be recorded at the time

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2011 - No journal entry would be recorded at the time the stock option plan was adopted. However, a memorandum entry in the journal might be made on November 30, 2011, indicating that a stock option plan had authorized the future granting to officers of options to buy 70,000 shares of $5.00 par value common stock at $9.00 a share. (To record issuance of 20,000 shares of $5 par value stock upon exercise of options at option price of $9)
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0eaa0a329e22b0a9ab0afeb0943e225b5f4c0e17.xlsx, Problem 16-3, Page 8 of 8, 03/29/2012, 01:32:15 Name: Date: Instructor: Course: provided that 70,000 shares of $5.00 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9.00 a share. The market price was $12.00 a share on November 30, 2012. On January 2, 2012, options to purchase 28,000 shares were granted to president Tom Winter - 15,000 for services rendered in 2012 and 13,000 for services to be rendered in 2013. Also on that date, options to purchase 14,000 shares were granted to vice president Michelle Bennett - 7,000 for services to be rendered in 2012 and 7,000 for services to be rendered in 2013. The market value of the stock was $14 a share on January 2, 2012. 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 2013 neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market value of the stock was $8 a share on December 31, 2013, when the options for 2012 services lapsed. On December 31, 2014, both president Winter and vice president Bennett exercised their options for 13,000 and 7,000 shares, respectively, when the market price was $16 a share. Instructions: Enter text answer here. Jan 2, 12 Enter text answer as appropriate. Dec 31, 12 Account title Amount Account title Amount Dec 31, 13 Account Title Amount Account Title Amount Dec 31, 13 Account Title Amount Account Title Amount Dec 31, 14 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse P16-3 (Stock-Option Plan) Berg Company adopted a stock-option plan on November 30, 2011, that Prepare the necessary journal entries in 2011 when the stock-option plan was adopted, in 2012 when options were granted, in 2013 when options lapsed, and in 2014 when options were exercised.
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