Stock Compensation - Journal Entries

Question 1

To record compensation cost over the service period (not considering tax effect for simplicity)

Answer 1

Compensation expense XXX

APIC - Stock Options XXX

Question 2

To record exercise of stock options

Answer 2

Cash (for any amounts the employees must pay) XXX
APIC - Stock options XXX
Common stock (par/stated value of shares issued) XXX
APIC Common