Intermediate Accounting: Reporting and Analysis, 2017 Update
2nd Edition
ISBN: 9781337116619
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 15, Problem 8RE
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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, 2015, ML Company grants 100 cash share appreciation rights to each of its 500 employees, on the condition that the employees remain in its employ for the next three years. During the year, 15 employees left the firm. ML Company estimates that around 45 employees will leave over the next two years. In 2016, 20 employees left the firm and ML Company expects that 20 employees will leave by next year.At the end of 2017, 150 employees exercise their share appreciation rights.In 2018, another 140 employees exercise their share appreciation rights.At the end of 2019, all the remaining 150 employees exercise their share appreciation rights.Year Fair value of the SAR Intrinsic value of the SAR2015 222016 262017 28 262018 32 282019 31 31
How much is the salaries payable as of December 31, 2018?
a. 480,000
b. 812,000
c. 771,333
d. 322,667
On January 1, 2015, ML Company grants 100 cash share appreciation rights to each of its 500 employees, on the condition that the employees remain in its employ for the next three years. During the year, 15 employees left the firm. ML Company estimates that around 45 employees will leave over the next two years. In 2016, 20 employees left the firm and ML Company expects that 20 employees will leave by next year.At the end of 2017, 150 employees exercise their share appreciation rights.In 2018, another 140 employees exercise their share appreciation rights.At the end of 2019, all the remaining 150 employees exercise their share appreciation rights.Year Fair value of the SAR Intrinsic value of the SAR2015 222016 262017 28 262018 32 282019 31 31
1. How much is the compensation expense in 2016?
a. 460,667
b. 430,667
c. 448,666
d. 322,667
2. How much…
Chapter 15 Solutions
Intermediate Accounting: Reporting and Analysis, 2017 Update
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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