On January 1, 2016, Robertson Company Created a Fixed Compensatory

question 111

Essay

On January 1, 2016, Robertson Company created a fixed compensatory stock option plan for employees to acquire
18,000 shares of $3 par common stock for $22 a share. The options vest after four years of employment, and therefore, they cannot be exercised until January 1, 2020. On the grant date, the fair value of the options was $5 per option. All options were exercised on June 30, 2020. Robertson Company accounts for this plan using the fair value method.
Required:
Record all entries relating to this stock option plan over the life of the plan.

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Definitions:

Ice Sheets

Massive, continent-sized sheets of ice found in polar regions, represented by Greenland and Antarctica, which significantly affect global climate and sea levels.

Shoreline Hazards

Natural or human-induced processes that pose a threat to coastal areas, including erosion, flooding, and pollution.

Offshore Islands

islands located away from the mainland, often surrounded by relatively deep water.

Storm Surge

A storm surge is an abnormal rise of water generated by a storm, over and above the predicted astronomical tides.