48 8) On January 1, 2024, La-Dee-Da Company awarded 16.1 million of its $1 par common shares to key officers, subject to forfeiture if employment is terminated within three years. On the date of the grant, the stock had a market price of $3 per share. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entry to record the award on January 1, 2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2026. 6. Prepare the appropriate journal entry to record the lifting of restrictions on December 31, 2026. 16.1 32 2

48 8) On January 1, 2024, La-Dee-Da Company awarded 16.1 million of its $1 par common shares to key officers, subject to forfeiture if employment is terminated within three years. On the date of the grant, the stock had a market price of $3 per share. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entry to record the award on January 1, 2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2026. 6. Prepare the appropriate journal entry to record the lifting of restrictions on December 31, 2026. 16.1 32 2

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...

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On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.
On January 1, 2018, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 parcommon shares to key personnel, subject to forfeiture if employment is terminated within three years. After therecipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date,the shares had a market price of $2.50 per share.Required:1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2018.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2018.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2019.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2020.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares atDecember 31, 2020.
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 25 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $3.30 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023. Please help and show formula
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 10 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $7.50 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
Nn.101. Subject:- Accounting On January 1, 2024, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 24 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $3.60 per share. Required: Determine the total compensation cost pertaining to the RSUs. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2024. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. Prepare the appropriate journal entry to record compensation expense on December 31, 2026. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2026.
U-LEE Company granted 180,000 restricted share awards of its no-par ordinary shares to executives, subject to forfeiture if employment is terminated within three years. U-LEE's' ordinary shares have a market price of $10 per share on January 1, 2021, the grant date, and on December 31, 2022, averaging $10 throughout the year. Discuss how the restricted share awards as compensation affect the computation of diluted EPS on December 31, 2021, the net increase in the denominator of the EPS.
PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.Required:1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021?2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021?
On January 1, 2016, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $2.50 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2016. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2016. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2017. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2018. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2018.
Gold Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P200 and the market price of the share on the date each right is exercised. The service period is 2022 through 2024 and the rights are exercisable in 2025. The market price of the share was P250 and P280 on December 31, 2022 and 2023, respectively. What amount should Gold Company report as liability under the share appreciation rights on December 31, 2023?ANSWER: 1,600,000 Please kindly show solution. Thanks
2. On January 1, 2019, an entity granted 60,000 share options to employees. The share options vest at the end of three years provide the employees remain in service until then. The option price is P60 and the par value is P50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options can be exercised within one year after vesting. The share prices are P62 on December 31, 2019, P66 on December 31, 2020, P75 on December 31, 2021 and P85 on December 31, 2022. All options were exercised on December 31, 2022. • What is the compensation expense for 2021? 3. An entity began operations January 1, 2015 and reported the following net income or loss for five years of operations. 2015 P1 500 000 Loss 2016 1 300 000 Loss 2017 1 200 000 Loss 2018 4 500 000 Income 2019 9 000 000 Income On December 31, 2019, the capital accounts were: Preference share capital, P100
Mann Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2021, the corporation granted 10 million of its $5 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market value of $10 per share on the date the award is granted. Required:1. Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares.2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
23. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. The plan had a two-year service period. Compensation expense in year 3?