Answer:
Explanation:
Date General Journal Debit Credit
Jan 1 2018 No Entry when granting
Dec 31 2018 Compensation Expense ($350,000/2 Years) $175,000
Paid in Capital Stock Options $175,000
(for Year 2018 - compensation expense)
Apr 1 2019 Paid in Capital Stock Options $ 17,500
Compensation Expense $ 17,500
(To record termination of stock options)
$350,000*2,000/20,000*1/2
Dec 31 2019 Compensation Expense ($350,000/2 Years) $157,500
Paid in Capital Stock Options $157,500
(for Year 2019 - compensation expense)
$350,000*18,000/20,000*1/2
Mar 31 2020 Cash (12,000*$25) $300,000
Paid in Capital Stock Options ($350,000*12,000/20,000) $210,000
Common Stock (12,000*$10) $120,000
Paid in capital, in excess of par-Common $390,000
(To record exercise of stock options)
