2-17. On January 2, 2020, the shareholders of Fire Red Company approved a plan granting certain...
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2-17. On January 2, 2020, the shareholders of Fire Red Company approved a plan granting certain officers of the company nontransferable options to buy 50,000 shares of P100 par ordinary share capital at P280 per share. model used by the company indicates that the fair value of each option on January 2, 2020 is P30. The plan provides that the officers must be employed by the company until December 31, 2022 and that the options will expire at the end of 2023. The option-pricing At December 31, 2020, it was expected that 45,000 share At December 31, 2020, it was expected that 45,000 shar options would vest, although in June 2021 some officers wi 6,000 share options left the entity. At the end of 2021, it w estimated that no other officers holding share options would leave before vesting of the options. However, an officer holding 1,500 share options left the entity in August 2022. remaining options were exercised during 2023. All REQUIRED: Prepare journal entries in the books of Fire Red Company pertaining to the options for years 2020 - 2023, inclusive. 2-17. On January 2, 2020, the shareholders of Fire Red Company approved a plan granting certain officers of the company nontransferable options to buy 50,000 shares of P100 par ordinary share capital at P280 per share. model used by the company indicates that the fair value of each option on January 2, 2020 is P30. The plan provides that the officers must be employed by the company until December 31, 2022 and that the options will expire at the end of 2023. The option-pricing At December 31, 2020, it was expected that 45,000 share At December 31, 2020, it was expected that 45,000 shar options would vest, although in June 2021 some officers wi 6,000 share options left the entity. At the end of 2021, it w estimated that no other officers holding share options would leave before vesting of the options. However, an officer holding 1,500 share options left the entity in August 2022. remaining options were exercised during 2023. All REQUIRED: Prepare journal entries in the books of Fire Red Company pertaining to the options for years 2020 - 2023, inclusive.
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Date Account titles Debit Credit Dec 2020 Employee Compensation 45000000 To ESOP 4500000... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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