On January 2, 2016, Dekker Company grants each of its 15 new employees 200 restricted share units. Each of the time-vested restricted share units entitles the employee to receive one share of Dekker common stock if they remain an employee of the company for 2 years. On January 2, 2016, shares of Dekkers $2 par value common are trading at $52 per share. Dekker estimates that 12 of the 15 employees will complete 2 years of service with the company. At the end of 2017, Dekker reported that four employees left the company before completing the service period. Required: 1. Prepare a schedule of Dekkers computations for its restricted share unit plan for 2016 and 2017. 2. Prepare all journal entries for the restricted share unit plan for 2016 and 2017.

Analysis

Dekker Company

Compensatory Share Plan Computations

2016 through 2017

1		2016	2017
2	Estimated (actual) total compensation cost
3	Fraction of service period expired	1/2	2/2
4	Estimated compensation expense to date
5	Previously recognized compensation expense
6	Current-period compensation expense