The compensation cost of RSUs

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Answer 1

Question

Chapter 19, Problem 19.4E

(1)

Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.

Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.

To determine

The compensation cost of RSUs

(2)

To determine

To prepare: Journal entry for the RSUs awarded on January 1, 2018

(3)

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 entry for compensation expense on December 31, 2018

(4)

To determine

The new compensation cost of RSUs, if 10% of shares are forfeited

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Answer 2

Question

Chapter 19, Problem 19.4E

(1)

Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.

Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.

To determine

The compensation cost of RSUs

(2)

To determine

To prepare: Journal entry for the RSUs awarded on January 1, 2018

(3)

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 entry for compensation expense on December 31, 2018

(4)

To determine

The new compensation cost of RSUs, if 10% of shares are forfeited

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 19, Problem 19.4E

(1)

Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.

Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.

To determine

The compensation cost of RSUs

(2)

To determine

To prepare: Journal entry for the RSUs awarded on January 1, 2018

(3)

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 entry for compensation expense on December 31, 2018

(4)

To determine

The new compensation cost of RSUs, if 10% of shares are forfeited

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 19, Problem 19.4E

(1)

Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.

Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.

To determine

The compensation cost of RSUs

(2)

To determine

To prepare: Journal entry for the RSUs awarded on January 1, 2018

(3)

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 entry for compensation expense on December 31, 2018

(4)

To determine

The new compensation cost of RSUs, if 10% of shares are forfeited

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 19, Problem 19.4E

(1)

Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.

Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.

To determine

The compensation cost of RSUs

(2)

To determine

To prepare: Journal entry for the RSUs awarded on January 1, 2018

(3)

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 entry for compensation expense on December 31, 2018

(4)

To determine

The new compensation cost of RSUs, if 10% of shares are forfeited

Answer 6

Chapter 19, Problem 19.4E

(1)

Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.

Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.

To determine

The compensation cost of RSUs

Answer 7

Chapter 19, Problem 19.4E

(1)

Restricted stock: These are the share-based awards provided as compensation plans provided as incentives to the employees which include right to receive the shares and are restricted to employees’ extended tenure. The two variants of restricted stock are restricted stock awards, and restricted stock units.

Restricted stock units (RSUs): RSU is a right of the employee to receive a certain number of shares of stock of the company as a performance incentive, or usual compensation, or signing bonus.

To determine

The compensation cost of RSUs

Answer 8

(2)

To determine

To prepare: Journal entry for the RSUs awarded on January 1, 2018

Answer 9

(2)

To determine

To prepare: Journal entry for the RSUs awarded on January 1, 2018

Answer 10

(3)

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 entry for compensation expense on December 31, 2018

Answer 11

(3)

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 entry for compensation expense on December 31, 2018

Answer 12

(4)

To determine

The new compensation cost of RSUs, if 10% of shares are forfeited

Answer 13

(4)

To determine

The new compensation cost of RSUs, if 10% of shares are forfeited

Answer 14

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Answer 15

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Answer 16

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Answer 17

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The compensation cost of RSUs

Solution Summary: The author explains the two variants of restricted stock, which are restricted to employees' extended tenure. Journal entry is a set of economic events which can be measured in monetary terms.

The compensation cost of RSUs

To prepare: Journal entry for the RSUs awarded on January 1, 2018

The new compensation cost of RSUs, if 10% of shares are forfeited

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Chapter 19 Solutions