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

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Now assume that the market price of Amazon stock on the grant date was $47 per share. Prepare the journal entries for the first year of the plan assuming that, rather than options, 710 shares of restricted stock were granted at the beginning of 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit >
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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…