Brock Investing Group granted 25,000 stock options to its employees on January 1,2X03.Each option can be exercised to buy one share of common stock.The exercise price is $40 per share.The options vest at the end of 3 years on December 31,2X05.At the grant date,the fair value of the options is $4 per option.The shares had a par value of $1.The stock options are all exercised on December 31,2X05.
Required:
1. Prepare the journal entry on December $ 31,2 \times 03 $,
2. Prepare the journal entry on December $ 31,2 \times 04 $.
3. Prepare the journal entries on December $ 31,2 \times 05 $.

Question

Brock Investing Group granted 25,000 stock options to its employees on January 1,2X03.Each option can be exercised to buy one share of common stock.The exercise price is $40 per share.The options vest at the end of 3 years on December 31,2X05.At the grant date,the fair value of the options is $4 per option.The shares had a par value of $1.The stock options are all exercised on December 31,2X05.
Required:
 1. Prepare the journal entry on December $ 31,2 \times 03 $,
2. Prepare the journal entry on December $ 31,2 \times 04 $.
3. Prepare the journal entries on December $ 31,2 \times 05 $.

Quizplus · Accepted Answer

The Answer of Brock Investing Group granted 25,000 stock options to its employees on January 1,2X03.Each option can be exercised to buy one share of common stock.The exercise price is $40 per share.The options vest at the end of 3 years on December 31,2X05.At the grant date,the fair value of the options is $4 per option.The shares had a par value of $1.The stock options are all exercised on December 31,2X05.
Required:
 1. Prepare the journal entry on December $ 31,2 \times 03 $,
2. Prepare the journal entry on December $ 31,2 \times 04 $.
3. Prepare the journal entries on December $ 31,2 \times 05 $.

Brock Investing Group Granted 25,000 Stock Options to Its Employees 31,2×03 31,2 \times 03 31,2×03

Brock Investing Group Granted 25,000 Stock Options to Its Employees $31,2 \times 03$