PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date. Required: 1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021? 2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Entor vOur lions (i 10.000 0o00 should be entered as 10).)

PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date. Required: 1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021? 2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Entor vOur lions (i 10.000 0o00 should be entered as 10).)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1P: Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate...

See similar textbooks

Similar questions

Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling for 37 per share on the open market, and no significant impact on the market price is expected by the issuance of the additional shares. Prepare the journal entry to record this transaction.
PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.Required:1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021?2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021?
Note: This is a variation of E 19–29, modified to allow settlement in cash.)As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2018. At exercise, holders of the SARs are entitled to receivecash or stock equal in value to the excess of the market price at exercise over the share price at the date of grant.The SARs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $46 per share on the grant date. The fair value of the SARs, estimated by anappropriate option pricing model, is $3 per SAR at January 1, 2018. The fair value re-estimated at December 31,2018, 2019, 2020, 2021, and 2022, is $4, $3, $4, $2.50, and $3, respectively. All recipients are expected to remainemployed through the vesting date.Required:1. Prepare the appropriate journal entry to record the award of SARs on January 1, 2018.2. Prepare…
Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date of the restricted stock award. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted-average number of shares outstanding if the market price of the common shares averaged $5 per share during 2021?
Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employmentis terminated within three years. The common shares have a market price of $5 per share on January 1, 2017, thegrant date of the restricted stock award. When calculating diluted EPS at December 31, 2018, what will be thenet increase in the denominator of the EPS fraction if the market price of the common shares averaged $5 pershare during 2018?
Barron Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2021, the grant date. When calculating diluted EPS at December 31, 2022, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2022? A. 6 million B. 2.67 million C. 2 million D. 8 million
E15-14 Various Journal Entries Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters into the following transactions: 1. Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30% down payment. 2.Collects the remaining balance of the subscription contract and issues the common stock. 3. Acquires a building by paying $3,000 cash and issuing 3,000 shares of common stock and 900 shares of preferred stock. Common stock is currently selling at $46 per share; preferred stock has no current market value. The building is appraised at $225,000. 4. Sells 1,000 shares of common stock at $47 per share. 5. Sells 900 shares of preferred stock at $112 per share. 6. Declares a three-for-one stock split on the common stock, reducing the stated value to $2.00 per share. Required: Prepare memorandum and journal entries to record the preceding transactions.
PHN Foods granted 18 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2015, the grant date. Required: 1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2015 and December 31, 2016? 2. When calculating diluted EPS at December 31, 2016, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2016?
To continue in no. 13 (it is in the picture), assume the following transactions took place during 2020: Jan. 10 - One-half of the subscriptions receivable were collected and certificates of stock issued for 1,000 shares. 20 - Remaining subscriptions were declared delinquent and the corresponding chares put up for public auction. Advertising paid, P5,500. 25 - A bidder for 300 shares paid the amount due plus accrued interest of P750 and the corresponding certificates were issued. 31 - A stockholder received 2,000 preferred shares with a market value of P200 Feb. 8 - 300 treasury shares were sold for P45,000 20 - A shareholder paid P70,000 for 500 common shares. 28 - 5,000 preferred shares were redeemed at a price of P120 per share Mar. 1 - 100 treasury shares were sold for P10,000. Direction: 1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries 3) Prepare the shareholders' equity…
Niles Company granted 42 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. the common shares have a market price of 14 per share on january 1, 2017, the grant date of the restricted stock award. when calculating dilluted EPS at december 31,2018, what will be the net increase in the denominator of teh EPS fraction if the market price of teh common shares averaged 14 per share during 2018?
On January 1, 2019, Lion Company paid $600,000 for 10,000 shares of Wolf Compan's voting common stock, which was a 10% interest in Wolf. Lion does not have the ability to exercise significant influence over the operating and financial policies of Wolf. Lion received dividends of $1.00 per share from Wolf on October 2, 2019. Wolf reported net income of $400,000 for the year ended December 31, 2019，and the ending marlcet price of its shares was $63. On July 2, 2020, Lion paid $1,950,000 for 30,000 additional shares of Wolf’s voting common stock, which represents a 30% investment in Wolf '. The fair values of all of Wolf’s assets, net of liabilities, were equal to their book values of $6,500,000. As a result of tlus transaction, Lion has the ablity to exercise significant influence over the operating and financial policies of Wolf. Lion received dividends of $1.00 per share from Wolf on April 2, 2020, and $1.35 per share on October 1, 2020. Wolf reported net income of $500,000 for the…
P15-1 Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of $100 par preferred stock at $104 per share and 9,000 shares of no-par, no-stated-value common stock for $22 per share. The subscription contracts require a 10% down payment, with the balance due by Novem-ber 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remain-ing balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stock