On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 10. V expects that all 1,500 options will vest. After the 4 year period, all executives are still in the employ of V Co. and 7 executives exercised their option and purchased the shares for P 17 each. The par value of each share is P 15. How much is credited to the share premium account if 7 of the executives exercised their share options?
Q: On January 1, 2020, Barwood Corporation granted 5,000 options to executives. Each option entitles…
A: The annual compensation expense is calculated as follows: The annual compensation expense is…
Q: On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options…
A: Compensation expense = Number of employees × Number of options granted × Fair value ×Expired…
Q: On January 1, 2020, COLOR Company granted 250 share options to 30o employees, conditional upon the…
A: Cumulative Compensation Expense to be recognized = Fair Value* x ( Vesting Period Lapsed / Total…
Q: On January 1,2020 , Red Day Company granted 80 share options to each of its 400 employees for the…
A: If market related conditions are failed , we will continue to record expense , i.e. we will not…
Q: On July 1, 2016, Task Company granted share options to key employees for the purchase of 20,000 of…
A: Answer: 1 July,2016 Employees share stock option = 20000 Fair value of option = P9 Exercise Period =…
Q: 10,000 ordinary shares of P10 par value. The options call for a price of P25 per share and are…
A: Compensatory share options are the shares given to the employee's or other with the option to buy at…
Q: On January 1, 2021, Cullumber Inc. granted stock options to officers and key employees for the…
A: Journal entry is a process of recording business transactions in the books of accounts for the first…
Q: On January 1, 2018, Choosy Co. granted to an employee the right to choose either shares or cash…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: On January 1, Year 1, Sisig Corp. granted 60,000 share options to employees. The share options will…
A: Note: Compensation expense is allocated during the grat date to the vesting date. Expense can not be…
Q: Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At…
A: 1. TOTAL ESTIMATED VALUE OF THE OPTIONS PER EMPLOYEE = 90 X $8 = $720 2. TOTAL ESTIMATED VALUE OF…
Q: On January 1, 2020, Jangga Group grants share options to each of its 100 employees working in the…
A: Employee compensation through the stock option is recognized at fair value over the vesting period…
Q: On July 1, 2016, Tools Company granted share options to key employees for the purchase of 20,000 of…
A: Share options are a form of benefit provided to the employees of the company. It means rights are…
Q: On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options…
A: Employee stock option plan is a type of compensation plan that is offered to managerial personnel,…
Q: On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par valu of…
A: Share Premium upon exercise of share options = Number of granted share Options x (Exercise Price -…
Q: On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 30…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: On January 1, Year 1, Spaghetti Corp. granted 100 share options each to 500 employees, conditional…
A: S.NO Particulars YEAR 1 YYEAR 2 YEAR 3 1. Total No. of employees 500 500 500 2. Employees…
Q: On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par value of…
A: Share premium per share = Fair value of the share options on the date of the grant x No. of share…
Q: On January 1, 2020, Panic Company granted to a senior executive 30,000 share options, conditional…
A: A company can compensate its employees with shares in the business. The intention is to align…
Q: American Optical Corporation provides a variety of share-based compensation plans to its employees.…
A: 1. Determine the total compensation cost pertaining to the options. Total compensation cost of stock…
Q: On January 1, 2018, Red Inc. grants to an employee the right to choose either 1,000 phantom shares…
A: Here employee stock options with two alternative to employees either to take cash equivalent to…
Q: January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 50…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS General Journal Date Account Title and…
Q: On January 1, 2018, Adams-Meneke Corporation granted 25 million incentive stock options to division…
A: 1) Total Compensation cost on January 1, 2018 = No. of Stock options*Fair Value of Option Total…
Q: On January 1, 2020, XYZ Co. granted options to key executives to purchase 100,000 shares of the…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: .On January 1, 2019, Kamagong Company granted 100 share options each to 500 employees, conditional…
A: Total expected cost = No. of share options per employee x no. of employees x fair value per option…
Q: On January 1, 2018, PAPASA O ASA Co granted 300 share options to each of its 300 employees for the…
A: It is a contract between company and employees which gives right to the employees to buy company’s…
Q: On January 1, 2020, ABC Company granted to employees a share-based payment with cash and share…
A: Share premium will be recorded on the basis of the price of issuance date. Since shares are issued…
Q: January 1, 20x1, Mimosa Company grants 10,000 share options with a 10-year life to each of the 12…
A: Employee Stock Ownership Plan is the benefit plan given to the existing employees of the company.…
Q: On November 1, 2020, Sarasota Company adopted a stock-option plan that granted options to key…
A: Journal entry: Journal entry refers to an entry that is made to record the transactions which are…
Q: On January 1, Year 1, Jenny Corp. granted 60,000 share options to employees. The share options will…
A: Note: Compensation expense is allocated during the grat date to the vesting date. Expense can not be…
Q: On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par value of…
A: Share premium per share = Fair value of the share options on the date of the grant x No. of share…
Q: On January 1, 2018, Choosy Co. granted to an employee the right to choose either shares or cash…
A: Equity Alternative = 25,000 x P 45 = P 1,125,000 Cash Alternative Number of Shares Share…
Q: On January 1, 2020, Gabriela & Inc. granted to its CEO the right to choose either: ·…
A: When the counterparty( Employee) has a choice to either take cash or equity then accounting process…
Q: Corinthians granted 5,000 share options to employees at an exercise price of P5 per share. The…
A: 2021 Compensation expense = 4500 options x P402.5 years× 1 year…
Q: On January 1, 2020, Prospero Games Inc. granted stock options to managers and key employees under…
A: Employees stock option Plan Employees stock option plan which is considered to be the best option…
Q: On January 1, Year 1, Sisig Corp. granted 60,000 share options to employees. The share options will…
A: Note: Compensation expense is allocated during the grat date to the vesting date. Expense can not be…
Q: On January 1, 2020, Myeoong Company granted 60,000 share options to employees. The share options…
A: Upon exercise of equity options on December 31, 2023, Following journal entry will be passed:…
Q: On 1 January 2017, Gyamera Limited granted 100 share options to each of its 300 employees, with each…
A:
Q: Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At…
A: Employees Stock option Plan: The employee Stock option is the reward for the employee from the…
Q: At the beginning of year 1, James Ltd grants 100 share options to each of its 120 employees,…
A: In a stock option plan, fair value is estimated at the date of grant. Compensation expense is the…
Q: Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At…
A: Total estimated compensation expense for 18 executives (20-2) = 18×120×$8.5 =$18,360
Q: On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par value of…
A: Share premium per share = Fair value of the share options on the date of the grant x No. of share…
Q: On November 1, 2017, Windsor Company adopted a stock-option plan that granted options to key…
A: Stock option plan refers to shares offered by the company to its employees at a price lower than the…
Q: On January 1, Year 1, Spaghetti Corp. granted 100 share options each to 500 employees, conditional…
A: Total Compensation Expense booked upto Year 2 [(500 - 30 - 30) * 100 share option * P30 * 2 /3]…
Q: How much is the share options outstanding as of the 2nd year in the exercise period assuming out of…
A: An employee stock option gives the right to employees to purchase a pre specified number of shares…
Q: On January 1, 2020, ABC Company granted to employees a share-based payment with cash and share…
A: Phantom share are not actual shares, therefore the same shall not be included in equity component.
Q: On November 1, 2020, Columbo Company adopted a stock-option plan that granted options to key…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On January 2, 2021, the Life Science Corporation granted 9,000 stock options allowing employees to…
A: Compensation expense for year 2021 =Number of stock options granted × Fair value of stock…
Q: On January 1, 2020, ABC Company granted 80,000 share options to employees. The share options will…
A: Compensation expense for 2022 = (Share prices on December 31, 2022 - option price ) x no. of shares…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is 15.75. Phoenix expects a turnover rate of 15% over the 3-year service period. Determine the compensation expense for 2019 for this plan.On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 10. V expects that all 1,500 options will vest. After the 4 year period, all executives are still in the employ of V Co. and 7 executives exercised their option and purchased the shares for P 17 each. The par value of each share is P 15. 1. How much is the compensation expense for the 3rd year in the vesting period if 5 of the executives left in the 3rd year of the vesting period? 2. How much is the compensation expense for the 3rd year in the vesting period if 2 of the executives left in the 3rd year of the vesting period?
- On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 12. V expects that all options will vest. After the 4 year period, 80% of the executives are still in the employ of V Co. and 7 executives exercised their option during the 1st year of exercise period and purchased the shares for P 17 each. Exercise period is for 3 years from the end of the vesting period.The par value of each share is P 15. required: (a)How much is the compensation expense for the 3rd year in the vesting period if 2 of the executives left in the 3rd year of the vesting period? (B)How much is the share options outstanding as of the 2nd year in the exercise period assuming out of the total 7 executives who exercised their options, 3 and 2 executives exercised their options in the 1st year and 2nd year, respectively.On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 12. V expects that all options will vest. After the 4 year period, 80% of the executives are still in the employ of V Co. and 7 executives exercised their option and purchased the shares for P 17 each during the 1st year of exercise period. Exercise period is for 3 years from the end of the vesting period.The par value of each share is P 15. How much is the share options outstanding as of the 2nd year in the exercise period assuming out of the total 7 executives who exercised their options, 3 and 2 executives exercised their options in the 1st year and 2nd year, respectively. On January 1,2020, V Co. issued 50 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 10. V expects that…On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 12. V expects that all options will vest. After the 4 year period, 80% of the executives are still in the employ of V Co. and 7 executives exercised their option and purchased the shares for P 17 each during the 1st year of exercise period. Exercise period is for 3 years from the end of the vesting period.The par value of each share is P 15. How much is the share options outstanding as of the 2nd year in the exercise period assuming out of the total 7 executives who exercised their options, 3 and 2 executives exercised their options in the 1st year and 2nd year, respectively.
- On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year. The fair value of each share option on grant date is P35. The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options. · On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the compensation expense for 2022?On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year.The fair value of each share option on grant date is P35.The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options.· On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the share premium upon exercise of the share options on December 31, 2022?On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon the employees’ remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2021, 30 employees have left and it is expected that on the basis of weighted average probability, a further 30 employees will leave before the of the three-year period. On December 31, 2022, only 20 employees actually left and all of the share options are exercised on such date. How much is the compensation expense that should be recognized for 2022?A . 500,000 B. 880,000 C. 380,000 D. 470,000
- On January 1, Year 1, Spaghetti Corp. granted 100 share options each to 500 employees, conditional upon the employee’s remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, Year 2, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31, Year 3, only 20 employees actually left and all of the share options are exercised on such date. What is the compensation expense for Year 3? A. 880,000 B. 470,000 C. 380,000 D. 500,000On November 1, 2025, Kingbird Company adopted a stock-option plan that granted options to key executives to purchase 25,500 shares of the company's 59 par value common stock. The options were granted on January 2, 2026, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $50, and the fair value option-pricing model determines the total compensation expense to be $382.500. All of the options were exercised during the year 2028: 17,000 on January 3 when the market price was $65, and 8,500 on May 1 when the market price was $76 a share. Prepare journal entries relating to the stock option plan for the years 2026, 2027, and 2028. Assume that the employee performs services equally in 2026 and 2027. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is….On January 1, 2019, Kamagong Company granted 100 share options each to 500 employees, conditional upon the employee’s remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31, 2021, only 20 employees actually left and all of the share options are exercised on such date. QUESTIONS What amount should be reported as compensation expense for 2019? what amount should be reported as compensation expense for 2020? What amount should be reported as compensation expense for 2021?