On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Information on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Estimated Fair value per SAR number of SARS vesting Number of Year end SARS exercised $ 8 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 90% 15 93% 22 92% (actual) $18 2,100 14 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusive. (
Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…
A: Formulas that are used:-
Q: On January 2, 2021, ABC Company grants 50 shares each to 400 employees, conditional upon the…
A: Remuneration expense recognized upto December 31, 2022 = Year-end - no. of employee x No. of shares…
Q: On January 1, 2018, SARS Co. grants 100 cash share appreciation rights to each of its 500 employees,…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: On January 1,2020, Red Bull Corporation issued 10,000 share appreciation rights to its selected…
A: Share appreciation rights are rights given to shareholders that is related with cash equivalent of a…
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, 2019, Kyle company established a share appreciation rights plan to key employees…
A:
Q: On January 2, 2021, ABC Company grants 50 shares each to 400 employees, conditional upon the…
A: Remuneration expense recognized upto December 31, 2022 = Year-end - no. of employee x No. of shares…
Q: Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash…
A: The employee compensation on share based payment is recognized on fair value at the end of each year…
Q: As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares…
A:
Q: On January 1, 2015, ML Company grants 100 cash share appreciation rights to each of its 500…
A: As per our guidelines we are supposed to answer only 1 question. so the solution of first question…
Q: On Jan. 1, 2020, Terra Company established a share appreciation rights plan for the executives. The…
A: calculation of compensation income are as follows
Q: On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes…
A: Definition: Liability: Liability is an agreement made by a company to pay a certain amount for the…
Q: As part of its stock-based compensation package, on January 1, 2016, International Electronics…
A: 1.
Q: On January 1,2020, Striking Red Company issued 10,000 share appreciation rights to selected…
A: SAR's Stock Appreciation Right is a kind of compensation that is paid by the company to its…
Q: Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben…
A: A )
Q: On January 1, 2020, Soledad Company purchased 10% bonds with face amount of P3,000,000. The bonds…
A: Profit or loss on reclassification is the difference between the revised carrying value and…
Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…
A: Bond Valuation Bond can be valued either in par value or in discount or in premium as well. The…
Q: On January 1, 2011, Svetlana Company granted to employees a share-basedpayment with cash and share…
A: Employee Stock Option Plan- An employee benefits program that grants employees a stake in the…
Q: What is the share premium if the employee has chosen the share alternative on December 31, Year 3?
A: Fair value of equity alternative = 25,000 shares * P48 = P1,200,000 Fair value of cash alternative =…
Q: On December 31, 2016, Beckford Company issues 150,000 stock-appreciation rights to its officers…
A: a. Year Fair value Cumulative compensation (No. of SAR x Fair value) Percentage accrued…
Q: In connection with the share option for the benefit of the key employees, Obama Company intends to…
A: The question is related to option Accounting. In case options are granted to employees then the…
Q: ₱ 70,833
A:
Q: As part of its stock-based compensation package, International Electronics granted 24 million stock…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares…
A: All amounts are in (P).
Q: On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARs) to its employees.…
A: In the above question we have asked to pass journal entries in relation to share appreciate right…
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: Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash…
A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…
Q: rage of 12% over the two-year period; or at the end of 2022 if the earnings increased by an average…
A: The whole amount paid to an employee is referred to as remuneration. A salary ,hourly rate, bonuses,…
Q: On January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares…
A: This question is related to Employee stock options plans commonly known as ESOPs. ESOPs are a kind…
Q: In order to boost the sales of Leila & Co., the board of directors approved a share appreciation…
A: Sometime company pays more to the manager or officer if they achieve the specified targets set by…
Q: On December 31, 2016, Ferris Corporation granted 10,000 shares of its $1 par value common stock to…
A: Compensation expense = Exercise / Strike price per option x Number of Options = $40 x 10,000 =…
Q: On January 2, 2021, ABC Company grants 50 shares each to 400 employees, conditional upon the…
A: Remuneration expense recognized upto December 31, 2022 = Year-end - no. of employee x No. of shares…
Q: On January 1, 2011, Paul Co. granted its CEO, Valerie Paul, 1,000 stock options with an exercise…
A: Exercise price: Exercise price is for call and put options and is the price the underlying security…
Q: On January 2, 2021, Gray Company grants 50 shares each to 400 employees, conditional upon the…
A: This question deals with the concept of IFRS 2 " Share based payment". A share-based payment is a…
Q: On January 1, 2018, ABC Co. established a share appreciation rights plan for the executives. The…
A: FOR YEAR 2018 ON 1 JANUARY, 2018 ON 31 DECEMBER, 2018 EQUITY ALTERNATIVE (60000 *20) 1200000…
Q: Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash…
A: Stock Appreciation Right (SAR):-These are benefits that companies provide to their employees or…
Q: On December 31, 2010, Belmonte Company issues 150,000 stock appreciation rights to its officers…
A: a) Year Fair value Cumulative compensation (No. of SAR x Fair value) Percentage accrued…
Q: Ferraro, Inc. established a stock-appreciation rights (SARs) program on January 1, 2020, which…
A:
Q: On January 1, 2020, Soledad Company purchased 10% bonds with face amount of P3,000,000. The bonds…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given, then first question is to be…
Q: On January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares…
A: Fair value at year 3 = P65 No.of Shares for cash alternative = 20000 shares Par value per share =…
Q: On January 1, 2020, Orr Co. established a stock appreciation rights plan for its executives. They…
A: Journal entry is the process of recording business transactions in the books of accounts for the…
Q: Niles Company granted 42 million of its no par common shares to executives, subject to forfeiture if…
A:
Q: As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares…
A: Basic EPS =(Net income - Preferred dividends) / Weight. average no of common shares outstanding…
Q: The company established a stock appreciation rights program for the president. The program entitled…
A: Stock appreciation rights is also written as SAR. This program is linked with stock price. This is…
Q: Futuristic Products Company established a stock appreciation rights (SARS) program which entitles…
A:
Q: On January 1, 2015, ML Company grants 100 cash share appreciation rights to each of its 500…
A: Number of employees who can exercise their option in 2018 or 2019 = 140+ 150 = 290 Since the…
Q: On Jan. 1, 2020, Terra Company established a share appreciation rights plan for the executives. The…
A: The share appreciation rights are away the organization provides a bonus to its employees and the…
Q: On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) to its employees.…
A: SAR gives the employee the right to receive the compensation on the fair value of the shares, if the…
Step by step
Solved in 2 steps with 2 images
- On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Infomation on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Estimated Fair value per SAR Number of SARS exercised number of Year end SARS vesting Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 $ 8 90% | 15 93% 22 92% (actual) $18 2,100 14 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusiveOn December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARs) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Information on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Number of SARs exercised Year end Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 Fair value per SAR $ 8 15 22 Estimated number of SARs vesting 90% 93% 92% (actual) $18 14 2,100 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusive.Ayayai Corporation, during the year ended October 31, 2024, had the following transactions for money - market instruments purchased to earn interest: Jan. 2 Purchased a 90-day, $34,800 treasury bill maturing on May 1 for $ 34,591. May 1 The treasury bill matured. Aug. 1 Invested $56, 600 in a money - market fund. Aug. 31 Received notification that $142 of interest had been earned and added to the fund. Sept. 30 Received notification that $142 of interest had been earned and added to the fund. Oct. 1 Purchased a 60-day, 2.00%, $26, 100 treasury bill for $25,970. Oct. 15 Cashechthe money - market fund and received $56,955. (a) Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)…
- On January 1, 2019, Kyle company established a share appreciation rights plan to key employees where they are to receive cash at any time during the next four years. The predetermined price is P40 on 60,000 share appreciation rights (SARs) of which 20,000 SARs were exercised on December 31, 2021. Market prices on the following dates are as follows: Jan. 1, 2019, P50, Dec. 31, 2019, P56, Dec. 31, 2020, P70 and P60 on Dec. 31, 2021.a. Determine the amount of compensation expense to be recognized for the year 2019, 2020 and 2021.b. Determine the amount of liability to be presented in the statement of financial position for the year ended December 31, 2019, December 31, 2020 and December 31, 2021.c. Prepare the journal entries for 2019, 2020 and 2021.terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month ofallotment.Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the applicationmoney for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September2019.By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. Thedirectors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. Anamount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October2019.RequiredProvide the journal entries necessary to account for the above transactions and events.Question 4(a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of theintra-group…On January 1, 2020, a company issued P10,000,000 bonds that will mature in 5 years. The management decided to set up a separate fund for the retirement of these bonds. The fund is to be placed in a separate account to be maintained in the company's depository bank.In a board resolution, it was decided that deposits of equal amounts will be made every June 30 and December 31, starting June 30, 2020 up to December 31, 2024. The company expects to earn an average interest of 10%, net of tax, on this investment. How much is the required semi-annual deposit that will accumulate P10,000,000 at the end of five years? A. P1,637,975 B. P1,295,052 C. P1,000,000 D. P 795,045
- A company's pension plan fund had a balance of $500,000 on January 1, 2019 and $650,000 on December 31, 2019. There were deposits of $50,000 from members' contributions on each of March 1, 2019 and August 1, 2019. There were withdrawals due to retirements of $20,000 at the end of June and $25,000 at the end of November. Calculate the approximate dollar-weighted rate of return for the year. You can count partial parts of the year in months. (Answer to 4 decimal places/a percent to 2 decimal places.)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, 2020, Clarettes Inc. established a sinking fund of P2,000,000 under a trustee BDO Bank for payment of Bonds Payable which will mature on January 1, 2022. On December 31, 2020, the periodic trustee report shows that P1,000,000 was invested in securities and P500,000 in money market placement. On December 31, 2021, the periodic report from the trustee shows that the securities were sold for P1,300,000 and interest received on money market placement was P50,000. The trustee’s fees and administrative expenses during the year are P50,000 and P20,000 respectively. On January 1, 2022, Clarettes received a periodic report from the trustee that bonds payable of P2,000,000 and interest of P200,000 were paid. Required: 1. Prepare the entry for the preceding transaction 2. Based on the result of your audit, determine the following: A. Book value of bond sinking fund on December 31, 2020 B. Book value of bond sinking fund on December 31, 2021 C. Cash remitted to Clarettes from…
- On January 1, 2021, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2022. The 2021 income statement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. The stock’s book value was $16,000. The company’s fiscal year ends on December 31.Required:1. What is the note’s effective interest rate?2. Reconstruct the journal entries to record the sale of the stock on January 1, 2021, and the adjusting entry to record interest revenue at the end of 2021. The company records adjusting entries only at year-end.On January 1, 2018, ABC Co. established a share appreciation rights plan for the executives. The plan entitled them to receive cash at any time during the next four years for the difference between the market price of the ordinary shares and a pre-established price of P20 on 60,000 share appreciation rights On December 31, 2020, 20,000 are exercised by executives January 1, 2018 -25 per share December 31, 2018- 28 per share December 31, 2019- 35 per share December 31, 2020 - 30 per share What amount of compensation expense should be recognized for 2018On December 31, 2016, Beckford Company issues 150,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2017; $1 on December 31, 2018; $10 on December 31, 2019; and $9 on December 31, 2020. The service period is 4 years, and the exercise period is 7 years. Instructions a. Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. b. Prepare the entry at December 31, 2020, to record compensation expense, if any, in 2020. c. Prepare the entry on December 31, 2020, assuming that all 150,000 SARs are exercised.