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kvasek [131]
2 years ago
9

On January 1, 2021, Jeans-R-Us Company awarded 15 million of its $1 par common shares to key executives, subject to forfeiture i

f employment is terminated within three years. On the date of the grant, the stock had a market price of $3 per share.
Required:
1. Determine the total compensation cost pertaining to the restricted shares.
2. Prepare the appropriate journal entry to record the award on January 1, 2021.
3. Prepare the journal entry and record compensation expense on December 31, 2021.
Business
1 answer:
Sedaia [141]2 years ago
6 0

Answer and Explanation:

The computation and journal entries are shown below:

1.. The total compensation cost is

= 15 million × $3 per share

= $45 million

2.  

On Jan 1

Deferred compensation expense $45 million

            To Common Stock $15 million

            To Additional paid in capital $30 million

(Being expense is recorded)

3.

On Dec 31

Compensation expense ($45 ÷ 3) $15 million  

      To Deferred compensation expense $15 million

(Being expense is recorded)

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Answer:

Correct answer is B.

Explanation:

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3 years ago
Consider an economy with only two goods: bread and wine. In the base year, the typicalfamily bought 4 loaves of bread at $2 per
Inessa05 [86]

Answer:

The CPI for the given year is 123.

Explanation:

Consumer price index (CPI)

=\frac{\textrm{cost at given year}}{\textrm{cost at  base year}}

In the base year, the typical family bought 4 loaves of bread at $2 per loaf and 2 bottles of wine for $ 9 per bottle.

Cost at base year =$[(4×2)+(2×9)]

                             =$26

In a given year, bread cost $3 per loaf and wine cost $10 per bottle.

Cost at given year =$[(4×3)+(2×10)]

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The CPI for the given year is

=\frac {32}{26}\times 100

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Lloyd is chronically-ill and received tax-qualified long-term care insurance benefits in 2018 amounting to $8,000 to cover a 30-
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Answer:

A) $0

Explanation:

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For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
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Ending balance                                                                    3860

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