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Act Part2

The document provides instructions to record journal entries for restricted share transactions and compute weighted average ordinary shares for earnings per share calculations. Specifically: 1) Record restricted share grants on January 1, 2019 and fair value changes on December 31, 2020. 2) Record forfeiture of restricted shares on January 1, 2024 if the employee leaves the company. 3) Compute weighted average ordinary shares for 2019 and 2020 income statements and 2021 income statement considering share transactions.

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263 views1 page

Act Part2

The document provides instructions to record journal entries for restricted share transactions and compute weighted average ordinary shares for earnings per share calculations. Specifically: 1) Record restricted share grants on January 1, 2019 and fair value changes on December 31, 2020. 2) Record forfeiture of restricted shares on January 1, 2024 if the employee leaves the company. 3) Compute weighted average ordinary shares for 2019 and 2020 income statements and 2021 income statement considering share transactions.

Uploaded by

Moe Channel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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a.

Prepare the journal entries to record the restricted shares on January 1, 2019 (the date of grant),
and December 31, 2020.
b. On March 4, 2021, Yaping leaves the company. Prepare the journal entry (if any) to account for
this forfeiture.
E16.15 (LO3) (Accounting for Restricted Shares) Lopez SpA issues 10,000 restricted shares to its
CFO, Juan Carlos, on January 1, 2019. The shares have a fair value of €500,000 on this date. The
service period related to the restricted shares is 5 years. Vesting occurs if Carlos stays with the
company for 6 years. The par value of the shares is €10. At December 31, 2019, the fair value of the
shares is €450,000.
Instructions

a. Prepare the journal entries to record the restricted shares on January 1, 2019 (the date of grant),
and December 31, 2020.
b. On January 1, 2024, Carlos leaves the company. Prepare the journal entry (if any) to account for
this forfeiture.
E16.16 (LO4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year for financial
reporting. The company is authorized to issue 9,000,000 R$10 par ordinary shares. At no time has
Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo's ordinary
share activities.

1. Number of ordinary shares issued and outstanding at December 31, 2018 2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2019 240,000
3. Shares issued for cash on March 31, 2020 2,000,000
Number of ordinary shares issued and outstanding at December 31, 2020 4,640,000
4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31, 2021
Instructions

a. Compute the weighted-average ordinary shares used in computing earnings per ordinary share
for 2019 on the 2020 comparative income statement.
b. Compute the weighted-average ordinary shares used in computing earnings per ordinary share
for 2020 on the 2020 comparative income statement.
c. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary
share for 2020 on the 2021 comparative income statement.
d. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary
share for 2021 on the 2021 comparative income statement.
E16.17 (LO4) (EPS: Simple Capital Structure) On January 1, 2019, Chang Ltd. had 480,000 ordinary
shares outstanding. During 2019, it had the following transactions that affected the ordinary share
account.

February 1 Issued 120,000 shares


March 1 Issued a 20% share dividend
May 1 Acquired 100,000 treasury shares
June 1 Issued a 3-for-1 share split
October 1 Reissued 60,000 treasury shares
Instructions

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