INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 15, Problem 9E
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 Dekker’s $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.
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On January 2, 2021, ABC 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
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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%.
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Chapter 15 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
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