On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the...

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On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity's employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is $50. By the end of 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. COLOR's par value per share is P75 and the option price is $100. Requirements: E. Prepare all necessary entries for the year. F. Compute for the compensation expense for: 11. 2020 12. 2021 13. 2022 G. Fill in the amounts per individual account based on the exercise of the options on December 31, 2022 14. Debit to Cash? 15. Debit to Share options outstanding? 16. Credit to Ordinary share capital? 17. Credit to Share premium - ordinary shares? On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity's employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is $50. By the end of 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. COLOR's par value per share is P75 and the option price is $100. Requirements: E. Prepare all necessary entries for the year. F. Compute for the compensation expense for: 11. 2020 12. 2021 13. 2022 G. Fill in the amounts per individual account based on the exercise of the options on December 31, 2022 14. Debit to Cash? 15. Debit to Share options outstanding? 16. Credit to Ordinary share capital? 17. Credit to Share premium - ordinary shares?

Answer rating: 100% (QA)

E Prepare all necessary entries for the year January 1 2020 Grant Date Debit Share Options Outstandi... View the full answer