View the step-by-step solution to:


On January 1, 2013, the Miami Dolphins granted stock options to officers for the purchase of 20,000 shares of the

company's $10 par value common stock for $25 per share. The options are exercisable within a 5-year period beginning January 1, 2015, by grantees still being employed by the Dolphins. The options expire December 31, 2017. The service period for these awards is 2 years and a fair value option-pricing model has determined total compensation expense to be $400,000. On April 1, 2014, 3,000 options were terminated when one officer resigned from the Dolphins. The market price of the stock was $35/share on this date. On March 31, 2015, 12,000 options were exercised when the market price of the common stock was $42/share.

Prepare the journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense for the years ended December 31, 2013, 2014, and 2015.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors