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kvasek [131]
3 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]3 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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current liabilities at the beginning = (300+1000)= 1300

current liabilities at the end = (350+600)= 950

net working capital at the beginning = 1500 - 1300= 200

net working capital at the end = 1100 - 950= 150

therefore the change in net working capital for the year is 200 - 150 =50 000

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Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough t
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Answer:

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Explanation:

Please find the complete question in the attached file.

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(P) =\$2500\\\\(n) =3 \ years\\\\(r) = 4\%\\\\ \text{compounding period in year}\ (m) =1\\

The formula for Effective annual rate = ((1+(\frac{r}{m}))^m)-1

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Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $13,000 and $49,000, respectively. The partne
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Answer:

Explanation:

Based on the information that has been given in the question, the following answer can be provided

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