Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 19, Problem 19.4BE
To determine

The treatment of compensation expense by the company and journal entries to record the compensation.

Giveninformation:

Fair value of shares at grant date is $900,000.

Expenses at the end of year are $300,000.

Percentage of employee vesting for stock at the end of Year 2 is 35%.

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Gayle Industries applies overhead costs to jobs based on direct labor cost. Job X, which was started and completed during the current period, shows charges of $7,400 for direct materials, $12,000 for direct labor, and $7,800 for overhead on its job cost sheet. Job X2, which is still in process at year-end, shows charges of $4,100 for direct materials and $7,500 for direct labor.

Chapter 19 Solutions

Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)

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