Windy Lake Lodge Issued 24,000 At-The-Money Stock Options to Its

question 43

Essay

Windy Lake Lodge issued 24,000 at-the-money stock options to its management on January 1, 2021. These options vest on January 1, 2024. Windy Lake's share price was $19 on the grant date and $22 on the vesting date. Estimates of the fair value of the options showed that they were worth $3 on the grant date and $11 on the vesting date. On the vesting date, management exercised all 24,000 options. Windy Lake has a December 31 year-end.
Required:
Record all of the journal entries relating to the stock options.

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Definitions:

Adaptive

Characterizes the ability of an organism or system to adjust or change in response to new environments or conditions.

Specialized Structures

Physiological or anatomical parts of an organism adapted for a specific function or environment.

Biological Development

The process of growth and change in living organisms, encompassing physical, genetic, and hormonal changes that occur from conception to maturity.

Chromosomes

Structures composed of DNA and proteins that contain the genetic information of an organism.