- Option 3 March 12th Payment Online
- Option 3 March 12th Payments
- Option 3 March 12th Payment Date
- Option 3 March 12th Payment 2020
Stock option compensation is a form of equity based compensation in which a business rewards key personnel by granting them the rights to purchase shares in the business in return for their services.
Electric tricycle payment options: 3, 6 or 12 times without fees - Damius METHODS OF PAYMENT AT YOUR DISPOSAL A wide range of payment methods is available to you, so that you can complete your purchase according to your preference and especially using a simple and secure way. Compare call option prices at different strike prices with the probabilities to develop a profit potential matrix. The higher the option strike price, the lower the cost. However, a higher. The Conditional Payment Letter, the Demand letter, etc.) as well as receive identifiable health information, resolve any potential recovery claim that Medicare may have if there is a settlement, judgment, award, or other payment and make an electronic payment.
A stock option, sometimes referred to as a share option, is a contract between a buyer and a seller which gives the buyer the right to buy a stock at a specified price (referred to as the exercise or strike price) on or before a specific date, and the seller the obligation to complete the transaction by selling the stock.
The stock option lasts from a period of time (the life of the option) and will expire after that date and have no value.
A stock option only exists because the underlying stock exists. A stock option therefore derives from the underlying stock and is a form of derivative.
Types of Stock Option
There are two types of stock option.
- Put option – Option to sell at an agreed price on or before a specific date.
- Call option – Option to buy at an agreed price on or before a specific date .
An employee stock option is a type of call option granted by a business to an employee giving them the right to buy stock in the business at an agreed price on or before a specific date. The price is usually lower than the market price and is treated as part of the compensation of the employee.
When dealing with stock option compensation accounting there are three important dates to consider.
- Grant date: The date on which the stock options are granted.
- Vesting date: The date on which the rights to exercise the option are obtained. The time between the grant date and the vesting date is known as the vesting period.
- Exercise date: The date on which the stock options are exercised and shares are purchased.
Stock Option Compensation Accounting Treatment
The granting of stock options is a form of compensation given to key personnel (employees, advisers, other team members etc.) for providing their services. Like any other form of compensation, such as the cash payment of wages and salaries or fees to advisers, it is a cost to the business. In the case of stock option compensation the amount is ‘paid' in the form of stock options instead of cash.
Option 3 March 12th Payment Online
Amount
Like any cost, the cost of compensating the key personnel for their services if the fair value of the service they provide.
If for example an employee is paid a salary then the amount paid is regarded as a reflection of the fair value of the service provided. Likewise for stock option based compensation the fair value of the options granted can be used as an indication of the fair value of the service provided and therefore the cost to the business.
Vesting Period
The vesting period is important in stock option compensation accounting as it sets the time period over which the cost of compensating the option holder is treated as an expense in the income statement.
The purposes of granting stock options is to enable a business, particularly a startup business, to recruit, reward, and retain key personnel.
To ensure a employee does not immediately exercise their newly granted options and leave the business before the task they were employed for is complete, it is normal to have a vesting period. The vesting period is the period of time between the grant date and the vesting date at which the option holder receives the rights to exercise the option and purchase shares in the business. This is shown in the diagram above. So for example an employee might be granted 20,000 options but only receives the right to exercise then over a 4 year period at the rate of 5,000 options each year.
In addition a business will often have a requirement that if an employee leaves within a certain time period, for example one year, then they forfeit the right to excise any options and therefore leave without any shares in the business. The date before which the employee loses all rights to exercise the options is referred to a cliff.
Stock Option Compensation Example
At the start of the year a business grants five key personnel 300 stock options each. The fair value (FV) of each option at the date of grant is 7.00. The options vest at the end of a 3 year period at which point the option holders can exercise their options.
The exercise (strike) price is the same as the share price at the date of grant which is 20.00 and the nominal par value of each share is 1.00.
During the Vesting Period
During the vesting period the business needs to expense the total stock option compensation cost of the employees providing the service. The total cost is the fair value of the service which is represented by the fair value of the options granted in return for the service. In this example the cost is 7.00 for each option granted.
Year 1
The total expected stock option compensation cost over the 3 year vesting period is calculated as follows.
Since the vesting period is three years and one year of the service period has now been completed the business calculates the stock option compensation expense for the year as follows.
The stock option expense for year 1 (3,500) is the difference between the cumulative expense at the end of year 1 (3,500) and the cumulative expense previously recognized (0).
Stock Option Journal Entries – Year 1
Option 3 March 12th Payments
The stock option expense journal entry for the year is recorded as follows.
| Account | Debit | Credit |
|---|---|---|
| Stock option compensation expense | 3,500 | |
| APIC – Stock options | 3,500 | |
| Total | 3,500 | 3,500 |
The stock option compensation is an expense of the business and is represented by the debit to the expense account in the income statement. The other side of the entry is to the additional paid in capital account (APIC) which is part of the total equity of the business.
Year 2
In year 2 suppose one employee leaves the business and forfeits their stock option rights.
The total expected stock option compensation cost is now calculated as follows.
Since two years of the service period have now been completed the business calculates the stock option compensation expense for the year as follows.
The stock option expense for year 2 (2,100) is the difference between the cumulative expense at the end of year 2 (5,600) and the cumulative expense previously recognized in year 1 (3,500).
Stock Option Journal Entries – Year 2
The stock option expense journal entry for the year is recorded as follows
| Account | Debit | Credit |
|---|---|---|
| Stock option compensation expense | 2,100 | |
| APIC – Stock options | 2,100 | |
| Total | 2,100 | 2,100 |
Year 3
In year 3 suppose another employee leaves the business and forfeits their stock option rights.
The total expected stock option compensation cost is now calculated as follows.
Since three years of the service period have now been completed the business calculates the stock option compensation expense for the year as follows.
The stock option expense for year 3 (700) is the difference between the cumulative expense at the end of year 3 (6,300) and the cumulative expense previously recognized in year 2 (5,600).
Stock Option Journal Entries – Year 3
The stock option expense journal entry for the year is recorded as follows
| Account | Debit | Credit |
|---|---|---|
| Stock option compensation expense | 700 | |
| APIC – Stock options | 700 | |
| Total | 700 | 700 |
The table below summarizes the stock option compensation expense for the three year vesting period.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Number of options | 1,500 | 1,200 | 900 |
| FV of options at grant | 7.00 | 7.00 | 7.00 |
| Expected total cost | 10,500 | 8,400 | 6,300 |
| Service period | 1/3 | 2/3 | 3/3 |
| Cumulative expense | 3,500 | 5,600 | 6,300 |
| – Previous expense | 0 | 3,500 | 5,600 |
| Compensation expense | 3,500 | 2,100 | 700 |
The total stock option compensation expense is 6,300 (900 x 7.00), and this has been allocated to the income statement over the vesting period in the following amounts, year 1 (3,500), year 2 (2,100) and finally year 3 (700).
Option 3 March 12th Payment Date
Exercise of Options
After the options have vested the employees have the right to exercise their options and purchase shares in the business at the exercise (strike) price of 20.00.
Assuming all the options are exercised the increase in capital is calculated as follows.
The stock based compensation journal entries are as follows.
| Account | Debit | Credit |
|---|---|---|
| Cash | 18,000 | |
| Common stock | 900 | |
| APIC – Common stock | 17,100 | |
| Total | 18,000 | 18,000 |
The employees exercise their options and purchase the shares at the exercise price of 20.00 a share. The business receives cash of 18,000 and since the par value of the shares is 1.00 allocates 900 to common stock and the balance 17,100 to additional paid in capital (APIC).
Intrinsic Value
If the market value of each share at the exercise date is say 30.00 then the intrinsic value of the shares is calculated as follows.
About the Author
Option 3 March 12th Payment 2020
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.
2020-21 Tuition and Fees
| Tuition | $54,512 | |
| Room Fee | $10,056 | (1) |
| Board Fee | $6,207 | (2) |
| Student Activity & Technology Fee | $480 | |
| Matriculation Fee | $750 | (3) |
| Parking Fee | $440 | (4) |
(1) Additional fees may apply based upon Housing Options.
(2) Additional fees may apply based upon Meal Plan Options.
(3) One-time fee for new students only.
(4) Only for students registered to park on campus.
2020-21 Housing Options
Tier 1: $10,056 per academic year / $5,028 per semester
Includes: Conway, Delta Upsilon, Easton, Farber, Gates, 421 Hamilton Street, 635 High Street, Hillel House, March Hall, Marquis, McKelvy House, Portlock Black Cultural Center, Ramer, 225 Reeder Street, Ruef, Soles, Sorority Houses, Watson Courts, and Watson Hall
Tier 2: $10,452 per academic year / $5,226 per semester
Includes: Delta Kappa Epsilon, Fisher East, Fisher West, Grossman House, Kamine, Keefe, Kirby House, McKeen, Rubin, and South College
Tier 3: $10,622 per academic year / $5,311 per semester
Includes: 'Monroe House' participants in College-owned off-campus houses
Tier 4: $10,966 per academic year / $5,483 per semester
Includes: non-'Monroe House' participants in College-owned off-campus houses/apartments
Tier 5: $11,284 per academic year / $5,642 per semester
Includes:
– 512 March Street apartments
– McCartney Street (North & South) – Third-Party Owned Housing (full academic year contract required)
2020-21 Meal Plan Options
(1) Students are required to carry the minimum meal plan listed for their class year & housing location.
(2) Meal Plans will begin with lunch on February 1, 2021 prior to the start of classes and end at dinner on May 30, 2021. All days during the Spring Semester will be full service days
(3)Pard Dollars can be used at all on-campus Dining venues and at participating off-campus merchants. Meal Plans include an allotment of Pard Dollars for use during the fall and spring semesters. This allotment is non-refundable and does not roll over from semester to semester. Pard Dollars purchased in addition to the meal plan allotments shown above (known as Refundable Pard Dollars) do roll from semester to semester and can be refunded at graduation.
(4)A Private Kitchen is defined as (a) fully-equipped with stove/oven, refrigerator, and sink; and (b) self-contained within an individual residence hall apartment-style unit, College-owned off-campus house or apartment, or privately-owned houses and apartments. Residence hall apartment-style units include: Fisher East, Fisher West, Grossman House, Marquis Suite, Watson Courts.
2019-20 Tuition and Fees
| Tuition | $54,512 | |
| Room Fee | $10,056 | (1) |
| Board Fee | $6,207 | (2) |
| Student Activity & Technology Fee | $480 | |
| Matriculation Fee | $750 | (3) |
| Parking Fee | $440 | (4) |
(1) Additional fees may apply based upon Housing Options.
(2) Additional fees may apply based upon Meal Plan Options.
(3) One-time fee for new students only.
(4) Only for students registered to park on campus.
2019-20 Housing Options
Tier 1: $10,056 per academic year / $5,028 per semester
Includes: Conway, Delta Upsilon, Easton, Farber, Gates, 421 Hamilton Street, 635 High Street, Hillel House, March Hall, Marquis, McKelvy House, Portlock Black Cultural Center, Ramer, 225 Reeder Street, Ruef, Soles, Sorority Houses, Watson Courts, and Watson Hall
Tier 2: $10,452 per academic year / $5,226 per semester
Includes: Delta Kappa Epsilon, Fisher East, Fisher West, Grossman House, Kamine, Keefe, Kirby House, McKeen, Rubin, and South College
Tier 3: $10,622 per academic year / $5,311 per semester
Includes: 'Monroe House' participants in College-owned off-campus houses
Tier 4: $10,966 per academic year / $5,483 per semester
Includes: non-'Monroe House' participants in College-owned off-campus houses/apartments
Tier 5: $11,284 per academic year / $5,642 per semester
Includes: 512 March Street apartments
2019-20 Meal Plan Options
(1) Plans begin at dinner the Saturday afternoon prior to the scheduled start of classes and end at dinner on the scheduled last day of final exams. Modified service is provided during Fall, Thanksgiving, and Spring break days with the exception of Thanksgiving day when all venues are closed.
(2) Pard Dollars can be used at all on-campus Dining venues and at participating off-campus merchants. Meal Plans include an allotment of Pard Dollars for use during the fall and spring semesters. This allotment is non-refundable and does not roll over from semester to semester. Pard Dollars purchased in addition to the meal plan allotments shown above (known as Refundable Pard Dollars) do roll from semester to semester and can be refunded at graduation.
(3) Unit with Private Kitchen is defined as: a self-contained residence hall suite, an apartment in Watson Courts, College-owned off-campus houses and apartments, and privately-owned houses and apartments
Billings & Policies
Tuition and fees are billed in early July for the Fall semester and in early December for the Spring semester. Students or Authorized Users may view charges or make payment through the College's secure Online Payment System operated through TouchNet. The Family Educational Rights and Privacy Act of 1974 (FERPA) requires students to grant permission to others to access student information and students can grant access to other users (for example, parents and other family members) by setting them up within the Online Payment System (instructions). The payment due date is approximately four weeks prior to the start of classes for the semester.
The student account statement will reflect all of the information the College has about the amount due for tuition, room fees, meal plans/board fees, purchases made on account at the College Store, and other student fees as well as any applicable payments and financial aid awards. Students and families are strongly encouraged to begin this sometimes lengthy process early so the aid is available when needed by the student bill due date. It is the responsibility of the student to file and follow up with the Financial Aid Office on all necessary financial aid forms to ensure that all anticipated aid is approved and credited to the student's account in advance of the payment due date.
Charges for other expenses incurred during the semester such as room damages, bookstore charges, late payment fees, fines, etc., are billed monthly and due upon receipt of the bill.
Students will not be allowed to register or attend classes until accounts are paid in full or until satisfactory payment arrangements are made. A late payment fee of $300 is assessed if payment is not received or satisfactory arrangements are not made by the established due date and additional late fees may be assessed until payment is received.
Past due balances may affect the student's ability to register or attend classes and may cause the College to refer the delinquent account to a collection agency. The student may be responsible for paying the collection agency and attorney's fees. Delinquent accounts may be reported to one or more of the national credit bureaus.
Veterans or their dependents taking advantage of Chapter 31 or Chapter 33 benefits will not be imposed penalties, late fees, or other holds due to delayed payments from the U.S. Department of Veteran Affairs. Students are required to submit a certificate of eligibility for entitlement of benefits to the Education Liaison Representative (ELR) in the Office of the Registrar (registrar@lafayette.edu) no later than the start of the term in which the student wishes to use benefits.
The table below summarizes the stock option compensation expense for the three year vesting period.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Number of options | 1,500 | 1,200 | 900 |
| FV of options at grant | 7.00 | 7.00 | 7.00 |
| Expected total cost | 10,500 | 8,400 | 6,300 |
| Service period | 1/3 | 2/3 | 3/3 |
| Cumulative expense | 3,500 | 5,600 | 6,300 |
| – Previous expense | 0 | 3,500 | 5,600 |
| Compensation expense | 3,500 | 2,100 | 700 |
The total stock option compensation expense is 6,300 (900 x 7.00), and this has been allocated to the income statement over the vesting period in the following amounts, year 1 (3,500), year 2 (2,100) and finally year 3 (700).
Option 3 March 12th Payment Date
Exercise of Options
After the options have vested the employees have the right to exercise their options and purchase shares in the business at the exercise (strike) price of 20.00.
Assuming all the options are exercised the increase in capital is calculated as follows.
The stock based compensation journal entries are as follows.
| Account | Debit | Credit |
|---|---|---|
| Cash | 18,000 | |
| Common stock | 900 | |
| APIC – Common stock | 17,100 | |
| Total | 18,000 | 18,000 |
The employees exercise their options and purchase the shares at the exercise price of 20.00 a share. The business receives cash of 18,000 and since the par value of the shares is 1.00 allocates 900 to common stock and the balance 17,100 to additional paid in capital (APIC).
Intrinsic Value
If the market value of each share at the exercise date is say 30.00 then the intrinsic value of the shares is calculated as follows.
About the Author
Option 3 March 12th Payment 2020
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.
2020-21 Tuition and Fees
| Tuition | $54,512 | |
| Room Fee | $10,056 | (1) |
| Board Fee | $6,207 | (2) |
| Student Activity & Technology Fee | $480 | |
| Matriculation Fee | $750 | (3) |
| Parking Fee | $440 | (4) |
(1) Additional fees may apply based upon Housing Options.
(2) Additional fees may apply based upon Meal Plan Options.
(3) One-time fee for new students only.
(4) Only for students registered to park on campus.
2020-21 Housing Options
Tier 1: $10,056 per academic year / $5,028 per semester
Includes: Conway, Delta Upsilon, Easton, Farber, Gates, 421 Hamilton Street, 635 High Street, Hillel House, March Hall, Marquis, McKelvy House, Portlock Black Cultural Center, Ramer, 225 Reeder Street, Ruef, Soles, Sorority Houses, Watson Courts, and Watson Hall
Tier 2: $10,452 per academic year / $5,226 per semester
Includes: Delta Kappa Epsilon, Fisher East, Fisher West, Grossman House, Kamine, Keefe, Kirby House, McKeen, Rubin, and South College
Tier 3: $10,622 per academic year / $5,311 per semester
Includes: 'Monroe House' participants in College-owned off-campus houses
Tier 4: $10,966 per academic year / $5,483 per semester
Includes: non-'Monroe House' participants in College-owned off-campus houses/apartments
Tier 5: $11,284 per academic year / $5,642 per semester
Includes:
– 512 March Street apartments
– McCartney Street (North & South) – Third-Party Owned Housing (full academic year contract required)
2020-21 Meal Plan Options
(1) Students are required to carry the minimum meal plan listed for their class year & housing location.
(2) Meal Plans will begin with lunch on February 1, 2021 prior to the start of classes and end at dinner on May 30, 2021. All days during the Spring Semester will be full service days
(3)Pard Dollars can be used at all on-campus Dining venues and at participating off-campus merchants. Meal Plans include an allotment of Pard Dollars for use during the fall and spring semesters. This allotment is non-refundable and does not roll over from semester to semester. Pard Dollars purchased in addition to the meal plan allotments shown above (known as Refundable Pard Dollars) do roll from semester to semester and can be refunded at graduation.
(4)A Private Kitchen is defined as (a) fully-equipped with stove/oven, refrigerator, and sink; and (b) self-contained within an individual residence hall apartment-style unit, College-owned off-campus house or apartment, or privately-owned houses and apartments. Residence hall apartment-style units include: Fisher East, Fisher West, Grossman House, Marquis Suite, Watson Courts.
2019-20 Tuition and Fees
| Tuition | $54,512 | |
| Room Fee | $10,056 | (1) |
| Board Fee | $6,207 | (2) |
| Student Activity & Technology Fee | $480 | |
| Matriculation Fee | $750 | (3) |
| Parking Fee | $440 | (4) |
(1) Additional fees may apply based upon Housing Options.
(2) Additional fees may apply based upon Meal Plan Options.
(3) One-time fee for new students only.
(4) Only for students registered to park on campus.
2019-20 Housing Options
Tier 1: $10,056 per academic year / $5,028 per semester
Includes: Conway, Delta Upsilon, Easton, Farber, Gates, 421 Hamilton Street, 635 High Street, Hillel House, March Hall, Marquis, McKelvy House, Portlock Black Cultural Center, Ramer, 225 Reeder Street, Ruef, Soles, Sorority Houses, Watson Courts, and Watson Hall
Tier 2: $10,452 per academic year / $5,226 per semester
Includes: Delta Kappa Epsilon, Fisher East, Fisher West, Grossman House, Kamine, Keefe, Kirby House, McKeen, Rubin, and South College
Tier 3: $10,622 per academic year / $5,311 per semester
Includes: 'Monroe House' participants in College-owned off-campus houses
Tier 4: $10,966 per academic year / $5,483 per semester
Includes: non-'Monroe House' participants in College-owned off-campus houses/apartments
Tier 5: $11,284 per academic year / $5,642 per semester
Includes: 512 March Street apartments
2019-20 Meal Plan Options
(1) Plans begin at dinner the Saturday afternoon prior to the scheduled start of classes and end at dinner on the scheduled last day of final exams. Modified service is provided during Fall, Thanksgiving, and Spring break days with the exception of Thanksgiving day when all venues are closed.
(2) Pard Dollars can be used at all on-campus Dining venues and at participating off-campus merchants. Meal Plans include an allotment of Pard Dollars for use during the fall and spring semesters. This allotment is non-refundable and does not roll over from semester to semester. Pard Dollars purchased in addition to the meal plan allotments shown above (known as Refundable Pard Dollars) do roll from semester to semester and can be refunded at graduation.
(3) Unit with Private Kitchen is defined as: a self-contained residence hall suite, an apartment in Watson Courts, College-owned off-campus houses and apartments, and privately-owned houses and apartments
Billings & Policies
Tuition and fees are billed in early July for the Fall semester and in early December for the Spring semester. Students or Authorized Users may view charges or make payment through the College's secure Online Payment System operated through TouchNet. The Family Educational Rights and Privacy Act of 1974 (FERPA) requires students to grant permission to others to access student information and students can grant access to other users (for example, parents and other family members) by setting them up within the Online Payment System (instructions). The payment due date is approximately four weeks prior to the start of classes for the semester.
The student account statement will reflect all of the information the College has about the amount due for tuition, room fees, meal plans/board fees, purchases made on account at the College Store, and other student fees as well as any applicable payments and financial aid awards. Students and families are strongly encouraged to begin this sometimes lengthy process early so the aid is available when needed by the student bill due date. It is the responsibility of the student to file and follow up with the Financial Aid Office on all necessary financial aid forms to ensure that all anticipated aid is approved and credited to the student's account in advance of the payment due date.
Charges for other expenses incurred during the semester such as room damages, bookstore charges, late payment fees, fines, etc., are billed monthly and due upon receipt of the bill.
Students will not be allowed to register or attend classes until accounts are paid in full or until satisfactory payment arrangements are made. A late payment fee of $300 is assessed if payment is not received or satisfactory arrangements are not made by the established due date and additional late fees may be assessed until payment is received.
Past due balances may affect the student's ability to register or attend classes and may cause the College to refer the delinquent account to a collection agency. The student may be responsible for paying the collection agency and attorney's fees. Delinquent accounts may be reported to one or more of the national credit bureaus.
Veterans or their dependents taking advantage of Chapter 31 or Chapter 33 benefits will not be imposed penalties, late fees, or other holds due to delayed payments from the U.S. Department of Veteran Affairs. Students are required to submit a certificate of eligibility for entitlement of benefits to the Education Liaison Representative (ELR) in the Office of the Registrar (registrar@lafayette.edu) no later than the start of the term in which the student wishes to use benefits.
Making a Payment
Payments for any amounts due can be made in one of the following ways:
- Electronic payments can be made by Students and Authorized Users via an electronic check (ACH). Read more about how to utilize the electronic payment system.
- Check payments (payable to 'Lafayette College' in U.S. Dollars) mailed with the remittance slip from the Student Account Statement to:
Lafayette College Student Payments
P.O. Box 36479
Newark, NJ 07188-6479
- Hand delivering a check to the Cashier's Window on the basement floor of Marquis Hall. The Cashier's Window is open most weekdays from 8:30 a.m. until 4:30 p.m.
- International Wiretransfer (in U.S. dollars only) via FlyWire. Please note that the sender is responsible for bank charges related to wire transfer transactions.
Tuition Payment Plan
A payment plan is available to students who would prefer to pay in monthly installments. For a nominal fee, you will be able to enroll in two separate 3-month term-based plans. Students or Authorized Users can enroll in the plan by logging onto TouchNet. Please have your student set you up as an Authorized User. Please contact the Student Accounts office at 610-330-5145 or studentbilling@lafayette.edu with any questions.
Refund Policies
For information on the College's refunds policies, please click here
