Homework Answers
| Solution | |||||
| S.No. | Description | Date | Accounts | Debit | Credit |
| 1 | Restricted stock grant | 01-01-2021 | Unearned (deferred) Compensation | $75,000.00 | |
| Common Stock | $7,500.00 | ||||
| Common Stock Premium | $67,500.00 | ||||
| 2 | expense accrual at 12/31/2021 | 12/31/2021 | SBC (Stock based compensation) Expense/compensation | $37,500.00 | |
| Unearned (deferred) Compensation | $37,500.00 | ||||
| 3 | the forfeiture on 02/18/2022 | 02/18/2022 | Unearned (deferred) Compensation | $7,500.00 | |
| SBC (Stock based compensation) Expense/compensation | $7,500.00 | ||||
| 4 | expense accrual at 12/31/2022 | 12/31/2022 | SBC (Stock based compensation) Expense/compensation | $30,000.00 | |
| Unearned (deferred) Compensation | $30,000.00 | ||||
| Working for point 3 above | |||||
| Total expense recognised earlier for all 5 executives is $ 37,500 where one of the executive is leaving so his share of expense is to be reversed | |||||
| which is 1/5th of $ 37,500 | |||||
| Working for point 4 above | |||||
| Total compensation | $75,000.00 | (for 5 executives) | |||
| Less: compensation of 1 executive | $15,000.00 | ||||
| Total compensation to be recognised over 2 years | $60,000.00 | (for 4 executives) | |||
| Less: Already recognised | $30,000.00 | ($37,500 less $7500 reversed) | |||
| Balance to be recognised in 2022 | $30,000.00 | ||||
Add Answer to:
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received 1,500 shares of Alex common stock. The restricted shares vest on January 01, 2023; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of $75,000 (= $10 fair value per common share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received 1,500 shares of Alex common stock. The restricted shares vest on January 01, 2023; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of $75,000 (= $10 fair value per common share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received 1.500 shares of Alex common stock. The restricted shares vest on January 23; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she left Alex to join another company's executive team....
On January 1, 2021, Wendy Day Co, granted stock options to key executives exercisable for 519,000...
On January 1, 2021, Wendy Day Co, granted stock options to key executives exercisable for 519,000 shares of the company's common stock at $19 per share. The stock options are intended as compensation for the next five years. The options are exercisable within a four-year period beginning January 1, 2025, by the executives still in the employ of the company. No options were terminated during 2021, but the company anticipates 6% forfeitures over the life of the stock options. The...
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021,...
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Suppose...
On January 1, 2021, M Company granted 96,000 stock options to certain executives. The options are...
On January 1, 2021, M Company granted 96,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $9. An option-pricing model estimates the fair value of the options to be $3 on the date of grant. What amount should M recognize as compensation expense for 2021? ---- On January 1, 2021, M Company...
As part of its executive compensation plan, Vertovec Inc. granted 90,000 of its no-par common shares...
As part of its executive compensation plan, Vertovec Inc. granted 90,000 of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. Vertovec’s common shares have a market price of $9 per share on January 1, 2020, the grant date of the restricted stock award, as well as on December 31, 2021. 480,000 shares were outstanding at January 1, 2021. Net income for 2021 was $240,000. Required: Compute Vertovec’s basic and diluted earnings per...
On January 1, 2018, Marguerite DeVille Co. granted restricted stock units (RSUs) representing 300,000 of its...
On January 1, 2018, Marguerite DeVille Co. granted restricted stock units (RSUs) representing 300,000 of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. At the date of grant, DeVille anticipated that 6% of the recipients would leave the firm prior...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key executives exercisable for 1...
On January 1, 2018, Hugh Morris Comedy Club (HMCC) granted 1.2 million stock options to key executives exercisable for 1.2 million shares of the company’s common stock at $20 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company. No options were terminated during 2018. The market price of the common stock was $23...
Lance Chips granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, sub...
Lance Chips granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $5 per share on the grant date. The total compensation cost pertaining to the restricted stock units is: Multiple Choice $50 million. $5 million. $200 million. $40 million.
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received 1,500 shares of Alex common stock. The restricted shares vest on January 01, 2023; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of $75,000 (= $10 fair value per common share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received 1,500 shares of Alex common stock. The restricted shares vest on January 01, 2023; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of $75,000 (= $10 fair value per common share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she...
Q2. On January 01, 2021, Alex Company granted restricted stock to five executives. Each executive received 1.500 shares of Alex common stock. The restricted shares vest on January 23; thus, the restricted shares are compensation for services rendered during 2021 and 2022. The restricted shares had a grant date value of share x 1,500 shares per executive x 5 executives). On February 18, 2022, one executive forfeited her restricted shares because she left Alex to join another company's executive team....
On January 1, 2021, Wendy Day Co, granted stock options to key executives exercisable for 519,000 shares of the company's common stock at $19 per share. The stock options are intended as compensation for the next five years. The options are exercisable within a four-year period beginning January 1, 2025, by the executives still in the employ of the company. No options were terminated during 2021, but the company anticipates 6% forfeitures over the life of the stock options. The...
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company's $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Suppose...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago