1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Reika [66]
2 years ago
13

On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par common

shares to key personnel, 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. On the grant date, the shares had a market price of $2.50 per share.
Required:
a. Determine the total compensation cost pertaining to the RSUs.
b. Prepare the appropriate journal entry to record the award of RSL's on January 1, 2021.
c. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.
d. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.
e. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
f. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
Business
1 answer:
mixas84 [53]2 years ago
3 0

Answer:

1.$30 million

2b. No ournal entry required

3 c. Dr. compensation expense $10million

Cr. paid in capital - restricted stock $10million

4. Dr. compensation expense $10million

Cr. paid in capital - restricted stock $10million

5. e. Dr. compensation expense $10million

Cr. paid in capital - restricted stock $10million

6.f Dr. paid in capital - restricted stock $30million

Cr. common stock $12million

paid in capital - excess of par $18million

Explanation:

1. Calculation to determine Determine the total compensation cost pertaining to the RSUs.

Total compensation cost pertaining to the RSUs.

=$2.50 fair value per share × 12million shares represented by RSUs granted

Total compensation cost pertaining to the RSUs=$30million

2.b. Preparation of the appropriate journal entry to record the award of RSL's on January 1, 2021.

No ournal entry required

3 c. Preparionn of the appropriate journal entry to record compensation expense on December 31, 2021.

Dr. compensation expense $10million

($30 million/3 years )

Cr. paid in capital - restricted stock $10million

4. d. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022.

Dr. compensation expense $10million

Cr. paid in capital - restricted stock $10million

($30 million/3 years )

5. e. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.

Dr. compensation expense $10million

Cr. paid in capital - restricted stock $10million

($30 million/3 years )

6.f Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

Dr. paid in capital - restricted stock $30million

Cr. common stock $12million

paid in capital - excess of par $18million

($30 million-$12 million)

.

You might be interested in
The four career pathways in finance are?
kondaur [170]

The four career pathways in the finance cluster are banking and related services, business financial management, financial and investment planning, and insurance services.

3 0
3 years ago
In an emergency situation, such as a life-threatening trauma in an emergency room, a supervisor must be:_______.
weqwewe [10]

Answer:

d. direct and assertive.

Explanation:

In an emergency situation, such as a life-threatening trauma in an emergency room, a supervisor must be direct and assertive.

When there's an emergency situation, this ultimately implies a life and death situation which is typically characterized by having someone being in a very critical and dangerous condition. In order to be able to save such an individual or situations, it is very important and essential to have a direct and assertive supervisor who is in charge or control of the emergency situation and capable of making quick decisions that would most likely salvage the situation.

A supervisor who is assertive is confident, bold and positive about his or her instructions in any situation, which is a prerequisite quality to overcome emergencies.

8 0
3 years ago
Diminishing marginal product suggests that the marginal A. cost of an extra worker is unchanged. B. cost of an extra worker is l
MArishka [77]

Answer:

The correct answer is letter "D": product of an extra worker is less than the previous worker's marginal product.

Explanation:

The Law of Diminishing Marginal Productivity indicates that increasing one variable while holding others the same can initially increase output but eventually adding more of that variable results in lower return rates. This law helps explain that it is not always the best way to increase income by increasing production.

<em>Initially, companies recruiting additional workers would boost production until too few machines or not enough space is sufficient to accommodate everyone. Then, the production rate will decrease.</em>

7 0
3 years ago
Consider a portfolio comprised of four risky securities. Assume the economy has three states with varying probabilities of occur
olga nikolaevna [1]

Answer:

B. The portfolio expected rate of return must be the same for each economic state.

Explanation:

Variance formula = sum of (probability x (r - mean)^2)

r= expected return

if the expected return would be same for each economic state then the mean would equal to expected return which ultimately will give variance zero ( as r-mean would be 0).

Hence the correct option is B. The portfolio expected rate of return must be the same for each economic state.

8 0
3 years ago
F. in late 2010 hca announced an intended dividend recapitalization in which it would pay a $2 billion dividend to shareholders
Andrews [41]

Answer:

The times interest earned ratio will reduce

Explanation:

The times interest earned ratio is a ratio that looks at how many times a companies earnings from operations can cover the loan interest it has to pay in a year.

It is calculated by the formula Earnings Before Interest and Tax divided by the interest expense.

Therefore looking at the scenario, if HCA increases its debt level by issuing a $1.53 billion bond, this will increase its interest expense significantly and the number of times its earnings will cover its interest expense will be remarkably lower.

Therefore the times interest earned ratio will reduce

4 0
3 years ago
Read 2 more answers
Other questions:
  • What is a stock market? What is an example of a stock market?
    7·2 answers
  • Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents
    10·1 answer
  • Determine the total cost for this plan given the following forecast:
    13·1 answer
  • Sandra Kristof sells furniture for McKinney Furniture Company. Kristof is having financial problems and takes​ $650 that she rec
    10·1 answer
  • You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the
    14·1 answer
  • Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylen
    8·1 answer
  • The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common
    15·2 answers
  • Read the attached file
    12·1 answer
  • SnowPants for the children’s department cost $27.60 each. If a 54% markup is required, what minimum retail would achieve this ma
    8·1 answer
  • The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transa
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!