Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you help me with this question please and thank you Instructions X On January 1, 2019, as a form of executive compensation, Wadlin Corporation

image text in transcribedimage text in transcribedimage text in transcribed

can you help me with this question please and thank you

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Instructions X On January 1, 2019, as a form of executive compensation, Wadlin Corporation grants share appreciation rights to Robert Brandt. These rights entitle Brandt to receive cash equal to the excess of the quoted market price over a $20 option price for 8,000 shares of the company's common stock on the exercise date. The service period is 3 years (which Brandt is expected to complete), and the rights must be exercised within 5 years. Brandt exercises his rights on December 31, 2022. The fair value per SAR was as follows: 12/31/19, $3.00; 12/31/20, $4.20; 12/31/21, $4.00; and 12/31/22, $5.00. The quoted market price per share of common stock was $25 on December 31, 2022. Required: 1. Prepare a schedule to compute the compensation expense related to this SAR plan for 2019 through 2022. 2. Prepare the December 31, 2022, journal entry related to this SAR plan.X Chart of Accounts Wadlin Corporation General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511 Insurance Expense 198 Accumulated Depreciation 512 Utilities Expense 521 Salaries Expense LIABILITIES 522 Compensation Expense 211 Accounts Payable 532 Bad Debt Expense 231 Salaries Payable 540 Interest Expense 232 SAR Compensation Payable 541 Depreciation Expense 250 Unearned Revenue 559 Miscellaneous Expenses 261 Income Taxes Payable 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained EarningsX Analysis 1. Prepare a schedule to compute the compensation expense related to this SAR plan for 2019 through 2022. Additional Instructions WADLIN CORPORATION SAR Annual Compensation Expense 2019-2022 Estimated Total Total Accrued Yearly Fair Value per Date Compensation Fraction Accrued Compensation Compensation Compensation SAR Cost Expense to Date Expense to Date Expense 12/31/19 1/3 12/31/20 2/3 12/31/21 3/3 un 12/31/22 3/3General Journal X 2. Prepare the journal entry on December 31, 2022, to recognize the SAR compensation expense for 2022 and to record the exercise of the rights. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT N

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

12th edition

1259918947, 1260091908, 978-1259918940

More Books

Students also viewed these Accounting questions

Question

When do you think a hiring decision will be made?

Answered: 1 week ago

Question

The background knowledge of the interpreter

Answered: 1 week ago