AC 302 Chapter 16 Problem 3

AC 302 Chapter 16 Problem 3
Name				Date		
Instructor				Course		
Intermediate Accounting 14th 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 						
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:						
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.						
						
						
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