On january 1, 2018, adams-meneke corporation granted 24 million incentive stock options to division managers, each permitting holders to purchase one share of the company’s $1 par common shares within the next six years, but not before december 31, 2020 (the vesting date). the exercise price is the market price of the shares on the date of grant, currently $22 per share. the fair value of the options, estimated by an appropriate option pricing model, is $5 per option. management’s policy is to estimate forfeitures. no forfeitures are anticipated. ignore taxes. required: 1. determine the total compensation cost pertaining to the options on january 1, 2018.2. prepare the appropriate journal entry to record compensation expense on december 31, 2018.3. unexpected turnover during 2019 caused an estimate of the forfeiture of 5% of the stock options. determine the adjusted compensation cost, and prepare the appropriate journal entry(s) on december 31, 2019 and 2020.

Expert computers was started in 2018. the company experienced the following accounting events during its first year of operation: started business when it acquired $40,000 cash from the issue of common stock. purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. paid off one-half of the accounts payable balance within the discount period. sold merchandise on account for $28,000. credit terms were 1/20, n/30. the merchandise had cost expert computers $16,000. collected cash from the account receivable within the discount period. paid $2,100 cash for operating expenses. paid the balance due on accounts payable. the payment was not made within the discount period. required record the events in a horizontal statements model below. in the cash flows column, use the letters oa to designate operating activity, ia for investing activity, fa for financing activity, or nc for net change in cash. if the account is not affected by the event, leave the cell blank. the first event is recorded as an example. what is the amount of gross margin for the period? what is the net income for the period?