INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 15, Problem 8RE
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 Brust’s $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.
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On January 1, 2020, AllClear Company issues 2,000 shares of restricted stock to its CEO, Jason Skyline. AllClear’s stock has a fair value of $30 per share on January 1, 2020. Additional information is as follows.
The service period related to the restricted stock is five years.
Vesting occurs if Skyline stays with the company for a five-year period.
The par value of the stock is $10 per share.
Prepare journal entries relating to the restricted stock in 2020.
Assume that Jason Skyline leaves the company on April 1, 2021 (before any expense has been recorded during 2021). Prepare journal entry relating to the restricted stock in 2021, if necessary.
On January 2, 2021, Gray Company grants 50 shares each to 400 employees, conditional upon the employees' remaining in the company's employ during the vesting period.
The shares will vest at the end of 2021 if the company's earnings increased by more than 15%; or at the end of 2022 if the earnings increased by an average of 12% over the two-year period; or at the end of 2022 if the earnings increased by an average of 10% over the three-year period. The shares have a fair value of P25 on January 2, 2021, which is equal to the share price on the grant date.
At the end of 2021, earnings had increased by 13% and the company expects that earnings will continue to increase at a similar rate in 2022 and expects to vest in 2022. At the end of 2022,earnings increased by only 9% and therefore shares do not vest at the end of 2022. The company expects that earnings will continue to increase at similar rate. At the end of 2023, earnings increased by 9%. I
The amount of remuneration expense should…
On January 2, 2019, ANTMAN Company grants 50 shares each to 400 employees, conditional upon the employees’ remaining in the company’s employ during the vesting period. The shares will vest at the end of 2019 if the company’s earnings increased by more than 15%; or at the end of 2020, if the earnings increased by an average of 12% over the two-year period; or at the end of 2021 if the earnings increased by an average of 10% over the three-year period. The shares have a fair value of ₱25 on January 2, 2019, which is equal to the share price on the grant date. At the end of 2019, earnings had increased by 13% and 20 employees have left and the company expects that earnings will continue to increase at a similar rate in 2020 and expects to vest in 2020. The company also expects that a further 20 employees will leave during 2020. At the end of 2020, earnings increased by only 9% and therefore, shares do not vest at the end of 2020. Also, 15 employees have left the company in 2020 but…
Chapter 15 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
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Ch. 15 - Prob. 11GICh. 15 - Prob. 12GICh. 15 - Prob. 13GICh. 15 - Prob. 14GICh. 15 - Prob. 15GICh. 15 - Prob. 16GICh. 15 - Prob. 17GICh. 15 - Prob. 18GICh. 15 - Prob. 19GICh. 15 - How is a preferred stock similar to a long-term...Ch. 15 - Prob. 21GICh. 15 - Prob. 22GICh. 15 - Prob. 23GICh. 15 - Prob. 24GICh. 15 - Prob. 25GICh. 15 - What additional disclosures about preferred and...Ch. 15 - Prob. 1MCCh. 15 - Cary Corporation has 50,000 shares of 10 par...Ch. 15 - What is the most likely effect of a stock split on...Ch. 15 - Prob. 4MCCh. 15 - Prob. 5MCCh. 15 - Prob. 6MCCh. 15 - Prob. 7MCCh. 15 - When treasury stock is purchased for cash at more...Ch. 15 - Preferred stock that may be retired by the...Ch. 15 - When treasury stock accounted for by the cost...Ch. 15 - Brown Corporation issues 800 shares of its 5 par...Ch. 15 - Heart Corporation entered into a subscription...Ch. 15 - Blue Corporation issues 200 packages of securities...Ch. 15 - Sun Corporation issues 500 shares of 8 par common...Ch. 15 - Next Level Morgan Corporation issues 500 packages...Ch. 15 - Prob. 6RECh. 15 - On January 1, 2019, Phoenix Corporation adopts a...Ch. 15 - On January 2, 2019, Brust Corporation grants its...Ch. 15 - Prob. 9RECh. 15 - Assume Cole Corporation originally issued 300...Ch. 15 - Violet Corporation issues 1,200 shares of 150 par...Ch. 15 - Assume that Lily Corporation has outstanding 1,500...Ch. 15 - Tulip Corporation uses the cost method to account...Ch. 15 - Par Value and No-Par Stock Issuance Caswell...Ch. 15 - Combined Sale of Stock Maxville Company issues 300...Ch. 15 - Sale of Stock with Bonds Pilsen Company issues 12%...Ch. 15 - Issuance of Stock for Land Putt Company issues 500...Ch. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Prob. 8ECh. 15 - Restricted Share Units On January 2, 2019, Dekker...Ch. 15 - Prob. 10ECh. 15 - Convertible Preferred Stock On January 2, 2019,...Ch. 15 - Prob. 12ECh. 15 - Stock Rights with Preferred Stock Nelson...Ch. 15 - Various Journal Entries Lodi Company is authorized...Ch. 15 - Treasury Stock, Cost Method On January 1, Lorain...Ch. 15 - Contributed Capital Adams Companys records provide...Ch. 15 - Prob. 17ECh. 15 - Treasury Stock, Cost and Par Value Methods On...Ch. 15 - Treasury Stock, No Par Propst-Steele Production...Ch. 15 - Subscriptions On August 3, 2019, the date of...Ch. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Issuances of Stock Cada Corporation is authorized...Ch. 15 - Issuances of Stock Epple Corporation is authorized...Ch. 15 - Comprehensive Young Corporation has been operating...Ch. 15 - Comprehensive The shareholders equity section of...Ch. 15 - Treasury Stock Analysis Ray Holt Corporation has...Ch. 15 - Comprehensive Byrd Companys Contributed Capital...Ch. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Reconstruct Journal Entries At the end of its...Ch. 15 - Treasury Stock, Cost Method Bush-Caine Company...Ch. 15 - Prob. 17PCh. 15 - Prob. 1CCh. 15 - Prob. 2CCh. 15 - Prob. 3CCh. 15 - Capital Stock Capital stock is an important area...Ch. 15 - Treasury Stock A corporation sometimes engages in...Ch. 15 - Prob. 6CCh. 15 - Prob. 7CCh. 15 - Compensatory Share Option Plan Tom Twitlet,...Ch. 15 - Prob. 9CCh. 15 - Treasury Stock For numerous reasons, a corporation...Ch. 15 - Prob. 11CCh. 15 - Prob. 12CCh. 15 - Prob. 13CCh. 15 - Prob. 14C
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- Restricted Share Units On January 2, 2019, Dekker Company grants each of its 15 new employees 200 restricted share units. Each of the time-vested restricted share units entitles the employee to receive one share of Dekker common stock if they remain an employee of the company for 2 years. On January 2, 2019, shares of Dekkers 2 par value common are trading at 52 per share. Dekker estimates that 12 of the 15 employees will complete 2 years of service with the company. At the end of 2020, Dekker reported that four employees left the company before completing the service period. Required: 1. Prepare a schedule of Dekker s computations for its restricted share unit plan for 2019 and 2020 (round all computations to the nearest dollar). 2. Prepare all journal entries for the restricted share unit plan for 2019 and 2020.arrow_forwardheridan Company issues 4,400 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2020. The stock has a fair value of $123,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company for 4 years. The par value of the stock is $5. At December 31, 2021, the fair value of the stock is $133,000.(a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), and December 31, 2021. (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 0 for the amounts.) (b) On March 4, 2022, Yaping leaves the company. Prepare the journal entry to account for this forfeiture. (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 0 for the amounts.)arrow_forwardOn January 1, 2020, Gabriela & Inc. granted to its CEO the right to choose either:· Ordinary share (P25 par): 10,000 shares· Cash payment equal 7,500 shares of P25 par ordinary sharesThe grant will vest, provided that the CEO remained in the company for a period of three years. If the CEO opts for the share alternative, he/she shall hold the shares for a period of three years after the vesting date. On the date of grant, the share price of the ordinary share is P50. The ordinary share price for the each of the vesting period is as follows:· December 31, 2020: P52· December 31, 2021: P57· December 31, 2022: P61Based on the available information of the entity, the entity estimated that the fair value of the share alternative is P48 per share. How much is the compensation expense for 2021, arising from the equity alternative and cash alternative, respectively? a. 35,000 ; 200,000 b. 35,000 ; 142,500 c. 105,000 ; 427,500 d. 35,000 ;…arrow_forward
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