SaaS
ESOP Exercise — Employee Buys Shares
Recording the cash received and shares issued when an employee exercises their stock options.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash (Exercise Price) | Asset (+) | 10,000.00 | - |
| APIC — Stock Options (Exercised) | Equity (-) | 50,000.00 | - |
| Common Stock (Par Value) | Equity (+) | - | 1,000.00 |
| APIC — Common Stock | Equity (+) | - | 59,000.00 |
💡 Accountant's Note
When an option is exercised, the accumulated APIC from the option grant is reclassified to Common Stock and APIC-Common Stock. Cash is received at the exercise price.
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