On January 1, 2010, Hilltop, Inc. granted to a key - 14651

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                     Exhibit 5

On January 1, 2010, Hilltop, Inc. granted to a key executive a fixed compensatory option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $12 per option. The service period extended through December 31, 2011.

Refer to Exhibit 5. What entry, if any, was required on December 31, 2010?

Answer

 

no entry was necessary

 

Compensation Expense              12,000

   Common Stock Option Warrants             12,000

 

Compensation Expense               6,000

   Common Stock Option Warrants              6,000

 

Compensation Expense               9,000

   Deferred Compensation                     9,000

Solution Description

 

                     Exhibit 5

On January 1, 2010, Hilltop, Inc. granted to a key executive a fixed compensatory option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $12 per option. The service period extended through December 31, 2011.

Refer to Exhibit 5. What entry, if any, was required on December 31, 2010?

Answer