INTERMEDIATE ACCOUNTING(LL) W/CENGAGENO
2nd Edition
ISBN: 9781305617001
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 15, Problem 9E
1.
To determine
Prepare a schedule of Company D’s computations for its restricted share unit plan for 2016 and 2017.
2.
To determine
Prepare the required
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On December 31, 2016, Ferris Corporation
granted 10,000 shares of its $1 par value
common stock to its employees. The shares
are restricted until 2 years of employment is
completed (December 31, 2018). Market price
of the common stock on that date of grant
was $40 per share. Assume that 10 percent of
the employees left (before vesting) on
January 1, 2018, and 90 percent of the
employees completed the vesting
requirements on December 31, 2018. Use the
Common Stock (Restricted) and the Deferred
Compensation accounts as illustrated in the
homework.
1. The journal entry to record the recognition
of compensation expense on December 31,
2017
2. The journal entry on January 1, 2018 to
record the forfeiture on 10 percent of the
restricted shares (because the employees did
not stay until vested)
3. The journal entries on December 31, 2018
to (1) recognize the remaining compensation
expense, and (2) to award the restricted stock
to the 90 percent of the employees who
vested.
On January 1, 2018, Choosy Co. granted to an employee the right to choose either shares or
cash payment. The choices are as follows:
• Share Alternative: Equal to 25,000 shares with par value of P40.
• Cash Alternative: Cash payment equal to the market value of 21,000 shares.
The grant is conditional upon the completion of three years of service. On the grant date, on
January 1, 2018, the share price P36. The share prices for the three year period are as
follows:
December 31, 2018
P46
December 31, 2019
P54
December 31, 2020
P60
After taking into account the effect of vesting restriction, Choosy Co. has estimated that the
fair value of the share alternative is P45.
1. What is the compensation to be recognized in December 31, 2018?
2. What is the compensation to be recognized in December 31, 2019?
3. What is the compensation to be recognized in December 31, 2020?
4. Assuming on December 31, 2020 the employee opted to receive the Cash Alternative, what is the share premium to be…
On January 1, 2014 share options were granted to employees where they can purchase 100,000 ordinary shares of $90 par at $100 per share. The fair value of the share options is $40 per share. The senior officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2016 and shall expire on December 31, 2016. What is the compensation expense recorded on December 31, 2015?
Chapter 15 Solutions
INTERMEDIATE ACCOUNTING(LL) W/CENGAGENO
Ch. 15 - Prob. 1GICh. 15 - Prob. 2GICh. 15 - What are the three components and the basic...Ch. 15 - List the various rights of a shareholder. Which do...Ch. 15 - What is the meaning of the following terms: (a)...Ch. 15 - Prob. 6GICh. 15 - Prob. 7GICh. 15 - How does preferred stock differ from common stock?Ch. 15 - What amount of the proceeds from the issuance of...Ch. 15 - Prob. 10GI
Ch. 15 - Prob. 11GICh. 15 - Prob. 12GICh. 15 - Prob. 13GICh. 15 - Prob. 14GICh. 15 - Prob. 15GICh. 15 - Prob. 16GICh. 15 - Prob. 17GICh. 15 - Prob. 18GICh. 15 - Prob. 19GICh. 15 - How is a preferred stock similar to a long-term...Ch. 15 - Prob. 21GICh. 15 - Prob. 22GICh. 15 - Prob. 23GICh. 15 - Prob. 24GICh. 15 - Prob. 25GICh. 15 - What additional disclosures about preferred and...Ch. 15 - Prob. 1MCCh. 15 - Prob. 2MCCh. 15 - What is the most likely effect of a stock split on...Ch. 15 - Prob. 4MCCh. 15 - Prob. 5MCCh. 15 - Prob. 6MCCh. 15 - Prob. 7MCCh. 15 - When treasury stock is purchased for cash at more...Ch. 15 - Preferred stock that may be retired by the...Ch. 15 - When treasury stock accounted for by the cost...Ch. 15 - Brown Corporation issues 800 shares of its 5 par...Ch. 15 - Heart Corporation entered into a subscription...Ch. 15 - Blue Corporation issues 200 packages of securities...Ch. 15 - Sun Corporation issues 500 shares of 8 par common...Ch. 15 - Next Level Morgan Corporation issues 500 packages...Ch. 15 - Prob. 6RECh. 15 - Prob. 7RECh. 15 - Prob. 8RECh. 15 - Prob. 9RECh. 15 - Assume Cole Corporation originally issued 300...Ch. 15 - Violet Corporation issues 1,200 shares of 150 par...Ch. 15 - Assume that Lily Corporation has outstanding 1,500...Ch. 15 - Tulip Corporation uses the cost method to account...Ch. 15 - Par Value and No-Par Stock Issuance Caswell...Ch. 15 - Combined Sale of Stock Maxville Company issues 300...Ch. 15 - Sale of Stock with Bonds Pilsen Company issues 12%...Ch. 15 - Issuance of Stock for Land Putt Company issues 500...Ch. 15 - Prob. 5ECh. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Prob. 8ECh. 15 - Prob. 9ECh. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Stock Rights with Preferred Stock Nelson...Ch. 15 - Various Journal Entries Lodi Company is authorized...Ch. 15 - Treasury Stock, Cost Method On January 1, Lorain...Ch. 15 - Prob. 16ECh. 15 - Treasury Stock, Cost Method (and IFRS Revaluation)...Ch. 15 - Treasury Stock, Cost and Par Value Methods On...Ch. 15 - Treasury Stock, No Par Propst-Steele Production...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Issuances of Stock Cada Corporation is authorized...Ch. 15 - Issuances of Stock Epple Corporation is authorized...Ch. 15 - Prob. 9PCh. 15 - Comprehensive The shareholders equity section of...Ch. 15 - Prob. 11PCh. 15 - Comprehensive Byrd Companys Contributed Capital...Ch. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Reconstruct Journal Entries At the end of its...Ch. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 1CCh. 15 - Prob. 2CCh. 15 - Prob. 3CCh. 15 - Capital Stock Capital stock is an important area...Ch. 15 - Treasury Stock A corporation sometimes engages in...Ch. 15 - Prob. 6CCh. 15 - Prob. 7CCh. 15 - Compensatory Share Option Plan Tom Twitlet,...Ch. 15 - Prob. 9CCh. 15 - Treasury Stock For numerous reasons, a corporation...Ch. 15 - Prob. 11CCh. 15 - Prob. 12CCh. 15 - Prob. 13CCh. 15 - Prob. 14C
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