O Share compensation plans: Share-Option Plan Delicious Beer Inc. grants on January 1, 2021, share options to 6 executives to purchase 3000 ordinary shares each with a par value of €1 and exercise price of C23 per share. The total compensotion expense has a fair value of €1800000 at the date of grant. Starting at the grant date, the service perlod is 3 years and the vesting period is 5 years. What journal entry does Delicious Beer Inc. make at year-end 2021 regording the compensotion expense for the 6 executives? Assume that the services are performed equally throughout the years and that no forfeiture of the share-option plans occurred.

O Share compensation plans: Share-Option Plan Delicious Beer Inc. grants on January 1, 2021, share options to 6 executives to purchase 3000 ordinary shares each with a par value of €1 and exercise price of C23 per share. The total compensotion expense has a fair value of €1800000 at the date of grant. Starting at the grant date, the service perlod is 3 years and the vesting period is 5 years. What journal entry does Delicious Beer Inc. make at year-end 2021 regording the compensotion expense for the 6 executives? Assume that the services are performed equally throughout the years and that no forfeiture of the share-option plans occurred.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

answer quickly
Preference sharesOn 1 March 2020, NOL issued 3 million 4% redeemable preference shares of $1 each at par andaccounted for as an equity. NOL will redeem the preference shares on 1 March 2025 at $4,408,000.The effective interest rate associated with the preference shares is 8%. On 28 February 2021, NOLpaid stated rate preference share dividend for the year to its shareholders. Discuss how each of the above events should account for in the financial statement of NOL for theyear ended 28 February 2021 with reference to relevant HKFRSs
wssssssss
On January 1, 2020, ABC Company purchased an equipment with a cash price of P2,000,000. The supplier can choose how the purchase is to be settled.The choices are 20,000 shares with par value of P50 in one year’s time, or a cash payment equal to the market value of 15,000 phantom shares on December 31, 2020. At grant date on January 1, 2020, the market price of each share is P80 and on the date of settlement on December 31, 2020, the market price of each share is P100.What is the equity component arising from the purchase of equipment with share and cash alternative? What amount of interest expense should be recognized on December 31, 2020 if the supplier has chosen the cash alternative?
Ice Shave Entity writes a put option on Dec 31, 20x1 to purchase 5000 shares in exchange for a $5,000 premium. Under the contract, Ice Shave may be required to purchase $100,000 of its own shares two years from now (PV of 82,645). The contract may be settled only under gross physical delivery method. Record all the necessary journal entries.
Share-based Compensation (Share Options) (PFRS 2)Problem 20. On January 1,2011, Smart Inc. granted 200 share options each to 1,000 employees,conditional upon the employee’s remaining in the entity’s employ during the vesting period. The shareoptions vests at the end of the three-year period. On grant date, each share option has a fair value ofP15. By December 31,2011, 200 employees have left and it is expected that on the basis of aweighted average probability, a further 100 employees will leave during the vesting period. ByDecember 31,2012, 150 employees have left and it is expected that a further 50 employees will leaveduring 2013. By December 31,2013, 100 employees have left. Ten share options are needed for thepurchase of one Ordinary Shares with par value of P10 at P12 per share. On January 1,2014, allshare options are exercised.Required: A. Prepare the adjusting entry on December 31,2011, 2012 and 2013.
pls help and if needed, provide supporting computations
Shares Sold – Subscription Basis On January 1, 2020, Aylmer offered to sell some shares on a subscription basis. The offer was for fifty individuals to purchase 100 common shares each at $20 per share. 60% of the amount was paid on June 30,2020. That transaction was recorded properly in the accounting records of Aylmer. The remaining amount will be received on June 30, 2021. NOTE - There is not a spreadsheet in the Excel file. Review the trial balance. You should determine if an entry should be made or not and make the required entry(ies) as necessary in the Excel tab labelled “Journal Entries” Trial Balance Unadjusted Trial Balance At December 31, 2019 At December 31, 2020 Preferred Shares 500,000 500,000 Common Stock 1,000,000 1,500,000 Common Stock Subscribed 100,000 Retained Earnings 337,366 692,275
Solution with explanation
Q.
You purchase one Virgin Galactic March 120 put contract (equalling 1000 shares) for a put premium of $10. You hold the option until the expiration date, when Virgin Galactic stock sells for $123 per share. a) How much is the realized profit/loss on the transaction? b) What is the maximum profit that you can realize on this position? c) What is biggest loss that you can suffer on this position? d) What is the realized profit/loss of your counterparty (the buyer of this call option)? Please briefly explain the calculations as well, thanks!
Problem 24. On January 1, 2015, ID Inc. granted to an employee the right to choose either: a. 12,000 share (Share or Equity Alternative) (Share options) b. Cash payment equal to market value of 10,000 shares (Cash Alternative) (Share appreciation rights) The grant is conditional upon the completion of three years of service. If the employee chooses the share alternative, the shares must be held for three years after vesting date. The par value of the shares is P25 and at grant date on January 1, 2015, the share price is P51. The share prices for the three-year vesting period are P54 on December 31, 2015, P60 on December 31, 2016 and P65 on December 31, 2017. After taking into account the effects of post-vesting restrictions, the entity has estimated that the fair value of the share or equity alternatives is P48 per share. Required: Based on the result of your audit, determine the following: 1. Compensation expense for year 2015 2. Compensation expense for year 2016 3. Compensation…