How much is to be debited to share premium- share options

Assignment Help Accounting Basics
Reference no: EM132544675

Question - On January 1, 2019, the shareholders of ABC Corporation approved a plan that grants the company's eight executives to purchase 2,000 shares each of the company's P120 par value ordinary shares. The options are granted on January 2, 2019 and may be exercised from January to December 31, 2021. Based on an option pricing model used by the enterprise, the fair value of the option on January 2, 2019 is P50. The option price per share is P100 and the fair value of the ordinary shares on January 2, 2019 is P150 per share. At the end of 2019, it was expected that all five executives would stay until the end of 2020. However, 2 of 8 executives resigned on May 31, 2020. Another 1 of the remaining 6 resigned on June 30, 2021. All of the remaining executives exercised the options on December 31, 2021.

Required -

1) How much is to be debited to Share Premium- Share options upon exercise of the option?

2) How much is the compensation expense for the year ended December 31, 2020?

3) How much is to be credited to Ordinary Share Capital upon exercise of the options?

Reference no: EM132544675

Questions Cloud

Describe the lack of educational opportunities : The information you provided in your PowerPoint presentation on Threats to the Global Environment has led to productive debates at the United Nations General.
How much is the value of the share options on December : The entity estimates that the value of the share alternative at the date of grant is P75 per share. How much is the value of the share options on December
Describe aspect of government stability : Describe the two aspect of "Government Stability, Bureaucracy Quality, tax policy, or Donald Trump policy" of America. And connect these aspect
Describe the guest complaint management system : Describe the guest complaint management system. How is guest survey data used?
How much is to be debited to share premium- share options : The option price per share is P100 and the fair value of the ordinary shares on January 2, 2019 is P150 per share. How much is to be debited to Share Premium
Identify domus corporate strengths and weakenesses : What are the pros and cons of developing North Point versus selling the land? What implications can be drawn from this analysis?
How much is the compensation expense for the year ended : On January 2, 2019, ABC Corporation granted 150 share options to each of its 250 employees. How much is the compensation expense for the year ended
Explain how diversity of workforce and characteristics : Explain how "diversity of workforce and their characteristics" are new challenges and opportunity for the managers of today?
What was the beginning balance in unearned revenue : The firm reported $225,500 in Revenue and $43,700 in Unearned Revenue. What was the beginning balance in Unearned Revenue at January 1, 2018

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is justin basis in the partnership

Justin and Tiffany form the equal TJ Partnership. Justin contributes cash of $300,000. Tiffany contributes property with an adjusted basis of $200,000 and a fair market value of $300,000.

  Calculate the dollar amount per share received

Calculate the dollar amount per share received from the re-issue of the treasury stock on November 2

  Compute the margin of safety in units and dollars

Munoz Company makes and sells products with variable costs of $51 each. Compute the margin of safety in units and dollars and as a percentage.

  Budgeted machine hours are 105000 hours and budgeted labor

thibodeaux limousine corporation is trying to determine a predetermined manufacturing overhead. estimated overhead for

  Calculate annual units sales volume

Please calculate annual units sales volume at which Martinez Company would be indifferent between the two manufacturing methods

  Prepare a partial balance sheet

Prepare a partial balance sheet showing the presentation of bonds and the interest payable at December 31, 2001

  Distinguish between cash receipts and cash disbursements

Class, cashflow is the difference between cash receipts and cash disbursements for a given accounting period. It is critical for every administrator to ensure.

  Compute cost of goods sold that appears on income statement

The cost of goods sold that appears on the income statement for August and that has been adjusted for any underapplled or overapplied overhead is closest to

  Prepare the compound general journal entry

Use this information to prepare the compound General Journal entry. If no entry is required then write "No Entry Required."

  What are the three alternative accounting methods

What are the three alternative accounting methods available to a seller that is exposed to continued risks of ownership through return of the product?

  A large inventory of automobiles at an auto manufacturing co

1. A large inventory of automobiles at an auto manufacturing company ( what constitutes good evidence for net realizable value and classification). 2. Available for Sale Security Investment-( what constitutes net realizable value and classification)

  Calculate the dividend payout and price earnings ratio

Ralite Company had net income for the year of $20 Million. Calculate the following ratios: (a)price/earnings ratio, (b) dividend yield, and (c) dividend payout

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd