The compensation cost of restricted shares

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Answer 1

Question

Chapter 19, Problem 19.1E

(1)

Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.

To determine

The compensation cost of restricted shares

(2)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entries related to restricted shares award plan through December 31, 2019

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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.B. Based on your audit, determine the following:____________1. Compensation…

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.

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Answer 2

Question

Chapter 19, Problem 19.1E

(1)

Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.

To determine

The compensation cost of restricted shares

(2)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entries related to restricted shares award plan through December 31, 2019

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Answer 3

Question

Chapter 19, Problem 19.1E

(1)

Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.

To determine

The compensation cost of restricted shares

(2)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entries related to restricted shares award plan through December 31, 2019

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 19, Problem 19.1E

(1)

Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.

To determine

The compensation cost of restricted shares

(2)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entries related to restricted shares award plan through December 31, 2019

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 19, Problem 19.1E

(1)

Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.

To determine

The compensation cost of restricted shares

(2)

To determine

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The entries related to restricted shares award plan through December 31, 2019

Answer 6

Chapter 19, Problem 19.1E

(1)

Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.

To determine

The compensation cost of restricted shares

Answer 7

Chapter 19, Problem 19.1E

(1)

Restricted stock awards: These are the shares which are granted in the name of the employee but the ownership is retained by company. But the employee possesses the rights as shareholders, with some restriction on forfeiture.

To determine