3. On the basis of a weighted average probability, SUFFUSE Co. estimates on January 1, 20x1 that 20 per cent of employees (100 x 20% - 20 employees) will leave during the three-year period and therefore forfeit their rights to the share options. During 20x1, 2 employees left. The entity revised its estimate of total employee departures over the three-year period from 20 per cent (20 employees) to 15 per cent (15 employees). During 20x2, additional 3 employees left. The entity revised its estimate of total employee departures over the three-year period from 15 per cent to 12 per cent (12 employees). During 20x3, additional 5 employees left. Hence, a total of 10 employees forfeited their rights to the share options dunng the three-year period, and a total of 90,000 share options (0 mployees x 1,000 options per employee) vested at the end of 203. Provide all the necessary journal entries.

3. On the basis of a weighted average probability, SUFFUSE Co. estimates on January 1, 20x1 that 20 per cent of employees (100 x 20% - 20 employees) will leave during the three-year period and therefore forfeit their rights to the share options. During 20x1, 2 employees left. The entity revised its estimate of total employee departures over the three-year period from 20 per cent (20 employees) to 15 per cent (15 employees). During 20x2, additional 3 employees left. The entity revised its estimate of total employee departures over the three-year period from 15 per cent to 12 per cent (12 employees). During 20x3, additional 5 employees left. Hence, a total of 10 employees forfeited their rights to the share options dunng the three-year period, and a total of 90,000 share options (0 mployees x 1,000 options per employee) vested at the end of 203. Provide all the necessary journal entries.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Number 1. On January 1, 2021, when a company's shares were selling in the market for $ 50 per share, the company granted 100,000 restricted shares to various executives. The restriction would be lifted on December 31, 2025. At the beginning of 2024, 10% of executives resigned from the company. REQUIRED: 1. Prepare the wage entries for the dates of January 1, 2021 and December 31, 2023.2. Prepare the wage entries for December 31, 2024 and 2025. Number 2. Use the information provided to calculate the weighted average number of common shares outstanding for 2020 diluted earnings per share purposes. • 24,000 common shares outstanding on January 1, 2020.• 10,000 convertible preferred shares outstanding on January 1, 2020. Each preferred share can be converted to 12 common shares.• 12,000 common shares issued on March 1, 2020• 5,000 preferred shares were converted to common shares on May 31, 2020.• 18,000 common shares were issued on September 1, 2020.• A 1: 2 reverse split took place on…
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a) On 1 January 2017, Gyamera Limited granted 100 share options to each of its 300 employees, with each of the share options being conditional upon the employee working for Gyamera Limited until 31 December 2019. At the grant date, the FV of each share option was GHC15.00. During 2017, 15 employees left Gyamera Limited and the company’s directors estimated that a total of 20% of the 300 employees would leave during the three-year period 2017-2019. At the beginning of 2018, Gyamera Limited modified the terms and conditions of the share option by reducing the exercise price. This had the effect of increasing the FV of a share option at the beginning of 2018 by GHC9.00. During 2018, a further six employees left the company and the directors revised their estimate of the total number of the 300 employees to 15% that would leave the company during the three-year period 2017-2019. During 2019, a further five employees left the company. Required; Calculate the remuneration expense that should…
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2

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