Employee Share Ownership Plans

question 3

Essay

Employee share ownership plans
Grieger Inc. set up an ESOP under which employees may purchase shares of the company for $ 20 per share. The option premium is $ .50 per share and Grieger set aside 20,000 shares. On January 1, 2020, 12,000 options are purchased by employees. On December 1, 2020, all 12,000 options are exercised.
Instructions
Prepare the journal entries to record the above events.

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Definitions:

Future Economic

Future economic refers to projections or expectations about economic conditions and their effects on investment, spending, and economic growth in the future.

Accrued Expense

Expenses that have been incurred but not yet paid or recorded in the financial statements, recognizing expenses when they are incurred, not when paid.

Computer Technician

A professional who diagnoses, repairs, and maintains computers and servers.

Software Updates

Amendments, improvements, or enhancements to software, including bug fixes, security patches, and new features to ensure optimal performance and security.