Windy Lake Lodge issued 24,000 at-the-money stock options to its management on January 1,2012.These options vest on January 1,2015.Windy Lake's share price was $19 on the grant date and $22 on the vesting date.Estimates of the fair value of the options showed that they were worth $3 on the grant date and $11 on the vesting date.On the vesting date,management exercised all 24,000 options.Windy Lake has a December 31 year-end.
Requirement:
Record all of the journal entries relating to the stock options.

Question

Quizplus · Accepted Answer

The Answer of Windy Lake Lodge issued 24,000 at-the-money stock options to its management on January 1,2012.These options vest on January 1,2015.Windy Lake's share price was $19 on the grant date and $22 on the vesting date.Estimates of the fair value of the options showed that they were worth $3 on the grant date and $11 on the vesting date.On the vesting date,management exercised all 24,000 options.Windy Lake has a December 31 year-end.
Requirement:
Record all of the journal entries relating to the stock options.

Windy Lake Lodge Issued 24,000 At-The-Money Stock Options to Its