Prepare the appropriate entry, Financial Accounting

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LCI Cable Company grants 1.4 million performance stock options to key executives at January 1, 2013. The options entitle executives to receive 1.4 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $10 per option.

1. Prepare the appropriate entry when the options are awarded on January 1, 2013. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) (Only 1 journal entry needed for this)


2. Prepare the appropriate entries on December 31 of each year 2013?2016. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) (4 journal entries needed)


3. Suppose at the beginning of 2015, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2015 and 2016. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) (2 journal entries needed)

 


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