Problem 25-19 (IFRS)Years. The agreement reguired the entity to pay cash basedPrecember 31, 2021, Jester Company modified theagreemént and canceled the 50.000 share appreciation rights.Instead, Jester Company granted 50,000 share options providedChat the employees remain with the entity for the next twoyears. On this date, the fair value of the share option is P7o.2020 and P130 on December 31, 2021.BWo-year period. The option price is P110 and the par value isP100.The options are exercisable at the end of the remainingOn December 31, 2023, only 40,000 share options wereexercised and 10,000 options were forfeited.1. What is the compensation expense for 2020?а. 250,000b. 500,000400,000d. 300,000с.2. What is the compensation expense for 2021?1,000,000b. 1,500,000750,000500,000a.с.d.3. What is the compensation expense for 2022?a. 2,625,000b. 1,750,000875,000d.C.500,000What is the compensation expense for 2023?2,800,000b. 2,400,000900,000d.a.с.175,000

1. On 01.01.2020, Jester Company granted rights shares = 50000 shares Predetermined price per right…

Problem 25-19 (IFRS) On January 1, 2020, Jester Company granted 50,000 share appreciation rights to employees. The vesting period is 4 The agreement required the entity to pay cash based on the excess of market price over the predetermined price of P100. The market price per share is P120 on December 31, 2020 and P130 on December 31, 2021. December 31, 2021, Jester Company modified the agreemént and canceled the 50.000 share appreciation rights. tharead, Jester Company granted 50,000 share options provided Chat the employees remain with the entity for the next two years. On this date, the fair value of the share option is P7o. The options are exercisable at the end of the remaining tWo-year period. The option price is P110 and the par value is P100. On December 31, 2023, only 40,000 share options were exercised and. 10,000 options were forfeited. 1. What is the compensation expense for 2020? a. 250,000 b. 500,000 400,000 d. 300,000 с. 2. What is the compensation expense for 2021? 1,000,000 b. 1,500,000 750,000 500,000 a. C. d. 8. What is the compensation expense for 2022? a. 2,625,000 b. 1,750,000 875,000 d. 500,000 C.

Problem 25-19 (IFRS) On January 1, 2020, Jester Company granted 50,000 share appreciation rights to employees. The vesting period is 4 The agreement required the entity to pay cash based on the excess of market price over the predetermined price of P100. The market price per share is P120 on December 31, 2020 and P130 on December 31, 2021. December 31, 2021, Jester Company modified the agreemént and canceled the 50.000 share appreciation rights. tharead, Jester Company granted 50,000 share options provided Chat the employees remain with the entity for the next two years. On this date, the fair value of the share option is P7o. The options are exercisable at the end of the remaining tWo-year period. The option price is P110 and the par value is P100. On December 31, 2023, only 40,000 share options were exercised and. 10,000 options were forfeited. 1. What is the compensation expense for 2020? a. 250,000 b. 500,000 400,000 d. 300,000 с. 2. What is the compensation expense for 2021? 1,000,000 b. 1,500,000 750,000 500,000 a. C. d. 8. What is the compensation expense for 2022? a. 2,625,000 b. 1,750,000 875,000 d. 500,000 C.

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

Problem 3-12 On January 1, 2019, an entity granted to a senior executive 20,000 share options, conditional upon the executive’s remaining in the entity’s employ until December 31, 2021. The par value per share is P50. The exercise price is P100. However, the exercise drops to P80 if the entity’s earnings increase by at least an average of 10% per year over the three-year period. On grant date, the entity estimates that the fair value of the share option is P30 if the exercise price is P80. If the exercise price is P100, the fair value of the share option is P25. During 2019 and 2020, the earnings increased by 12% and 11% respectively. However, during 2021, the earnings increased only by 4%. Required: A. Prepare journal entries from 2019 to 2021
None
Item 1 Item Details When the financial controller was providing details on the employee share schemes at Knappa, it was identified that share options granted to the production staff on 1 July 2022 were not accounted for in the year ended 30 June 2023 financial statements. On 1 July 2022, 1,000 share options were granted to each of Knappa's 30 production employees, on the condition that the employees remain with the company for the next two years and that the share price increases from $26.50 per share on 1 July 2022 to $35 per share on 30 June 2024. If the share price target at 30 June 2024 is achieved, the share options can be exercised at any time over the subsequent 12 months (ie up to 30 June 2025). The fair value of each share option at the grant date was $5.60. You have obtained the following information: Year Number of employees who departed during the year No of employees expected to depart in future years 30.06.2023¹ 30.06.2024 1. This information was obtained at 30 June 2023;…
5
Accounting On 30 June 2022, Sock Ltd leased equipment to Shoe Ltd. The equipment was in the records of Sock Ltd on 30 June 2022 at its fair value of $123,000. The lease agreement contained the following provisions: Lease term 3 years Economic life of equipment 4 years Annual rental payment, in arrears (first payment on 29/6/23) $45,000 Residual value at end of the lease term $10,000 Residual value guaranteed by lessee $4,000 Interest rate implicit in lease 8% Present value of $1 in 3 years at 8 % 0.7938 Present value of an annuity of $1 for 2 payments at 8% 1.7833 Present value of an annuity of $1 for 3 payments at 8% 2.5771 The equipment will be depreciated by Shoe Ltd on a straight-line basis. Shoe Ltd intends to return the equipment to Sock Ltd at the end of the lease term. The lease has been classified as a finance lease by Sock Ltd. Initial direct costs for setting up the lease were incurred by both parties: $855 for Shoe…
Fnanciol ACCOunting Chapter 11 Page 32 12. On Juy 1,2020, Ward Company purchased 5,000 of the P1000 face value,o bonds of Jury Company for P4,614,000 to yiekd 10% per annum. The bonds,WN mature on JUly 1,2025, poy interest semiannually on Janvary 1 and JDIY 1. Wara Uses the interest method of amortization and the bonds are appropriarey Tecorded as an investment at amortized cost. The bonds should be reponed i Ward's December31,2020 statermentof financialpositionnat Q. 4,583,300 b,4న44,700 C. 4,675400 d. 4,969,300 106 0000 foce voue of Show
Problem 5: (Share-based compensation: Share appreciation rights) TINCTURE Company granted 300 share appreciation rights to each of the 500 employees on January 1, 2020. The rights are due to vest on December 31, 2023 with payment being made on December 31, 2023 and expire on December 31, 2024. Only 75% of the awards vested. Share price January 1, 2020 (pre-determined price) December 31, 2020, 2021, and 2022 December 31, 2023 150 180 210 December 31, 2024 190 The share appreciation rights were exercised on December 31, 2024. Requirements: 1. Compute for the compensation expense for: 18. 2020 19. 2022 20. 2023 21. 2024
20-Hamad Traders acquired 20,000 shares of Muscat lightings at OMR 3 per share on January 2019. The transaction cost incurred was OMR 500. The investment is classified as available for sale. The shares are actively traded in the market. On December 31, 2019 the fair value of Muscat lightning’s shares decreased to OMR 2.7 per share. What is the journal entry for initial recognition if management choose to include the transaction cost in the cost of investment? a. None of the option is correct b. Investment account Debit 60,000; Cash Account Credit OMR 60,000 c. Investment account Debit 60,500; Cash Account Credit OMR 60,500 d. Investment Account Debit 59,500; Miscellaneous expense account Debit OMR 500; Cash Account Credit OMR 60,000 Clear my choice
on 1/8/2019 "ABC" Company sold a truck to "CDC" Company for $145,000. The buyer ("CDC" Company) paid $45,000 cash and signed a 9-month, 12% note for the balance. estion 4 yet wered Based on the above-given information, answer the following questions: red out of 1. What is the amount that "ABC" company should receive on the maturity date? o The Answer is: lag question 2. If "ABC" Company has a calendar year, Then the company must present: o For the year ended 31/12/2019, the must present Interest revenue with an amount of on its o As on 31/12/2019 The note receivable must be presented on the statement of financial position as a with an amount of o For the year ended 31/12/2020, the company must report interest revenue with an amount of Search
Problem 7: In January 2020, Golden Company invested in P900,000 equity securities representing 15% interest in Rings Company. Golden Company incurred transaction cost of P100,000. On December 31, 2020, this investment has a market value of P950,000. On July 1, 2021, Golden Company sold all the investments for P1,200,000. 7.1 What amount of gain on sale should Golden Company recognize in profit or loss assuming the security was classified as Investment at FVPL? 7.2 How much is the amount transferred to Retained earnings upon sale assuming the security was classified as Investment at FVOCI? 7.3 Prepare all the necessary journal entries.
Question: A company entered into an FRA. The terms of the agreement provide that the company will receive a fixed rate of 6% on a principal of $100 million between the end of years 1 and 2. The LIBOR rate for years 1 and 2 is 2.3079% and 3.4503%, while the forward rate at year 2 is 4.6055%. All rates are compounded annually. The value of the FRA is closest to: Question 19 options: −$1,303,032. +$872,900. +$1,303,032.
13