EG Corporation granted restricted stock units (RSUS) representing 32 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $6 per share on the grant date. Required: (1.) Ignoring taxes, determine the total compensation cost pertaining to the restricted stock units. (2.) What is the effect on earnings in the year after the shares are granted to executives?
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- On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 25 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 $3.30 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023. Please help and show formulaSecond Link Services granted restricted stock units (RSUs) representing 16 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $10 per share on the grant date. Ignoring taxes, what is the total compensation cost pertaining to the restricted stock units? What is the effect on earnings in the year after the shares are granted to executives?On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 10 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 $7.50 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
- On January 1, 2018, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 parcommon shares to key personnel, subject to forfeiture if employment is terminated within three years. After therecipients 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:1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2018.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2018.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2019.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2020.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares atDecember 31, 2020.Slytherin Services, Inc. granted 8 million of its $1 par common shares to executives subject to foreiture if employment is terminated within three years. The common shares have a market price of $6 per share on the grant date of the restricted stock award. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares (first answer, no dollar signs or commas, rounded to the nearest whole dollar)?On January 1, 2016, VKI 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: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2016. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2016. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2017. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2018. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2018.
- First Link Services granted 8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $6 per share on the grant date of the restricted stock award. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares? What is the effect on earnings in the year after the shares are granted to executives?PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.Required:1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021?2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021?First Link Services granted 5.8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. The common shares have a market price of $20 per share on the grant date of the restricted stock award. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?
- 49. 8) On January 1, 2024, La-Dee-Da Company awarded 16.1 million of its $1 par common shares to key officers, subject to forfeiture if employment is terminated within three years. On the date of the grant, the stock had a market price of $3 per share. Required: 16. 16.1 32 2 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entry to record the award on January 1, 2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2026. 6. Prepare the appropriate journal entry to record the lifting of restrictions on December 31, 2026.First Link Services granted 6 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $24 per share on the grant date of the restricted stock award. 1. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares?2. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?4. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. The plan had a two-year service period. Liability of SAR at year 3 is?