Breezy Lodge Issued 25,000 At-The-Money Stock Options to Its Management

question 12

Essay

Breezy Lodge issued 25,000 at-the-money stock options to its management on January 1, 2021. These options vest on January 1, 2024. Breezy's share price was $18 on the grant date and $25 on the vesting date. Estimates of the fair value of the options showed that they were worth $4 on the grant date and $11 on the vesting date. On the vesting date, management exercised all 25,000 options. Breezy has a December 31 year-end.
Required:
Record all of the journal entries relating to the stock options.

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Definitions:

Dissociative Disorders

A category of mental disorders characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Sense Of Identity

The way an individual perceives themselves, which is influenced by their beliefs, personality traits, and experiences.

Dissociative Disorder

A mental health condition marked by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Bulimia Nervosa

An eating disorder marked by episodes of binge eating followed by inappropriate methods of weight control, such as vomiting.