Ramelinium Purba

1. At date of grant 1 january 2019

No ENTRY

To record compensation expense for 2019 (december 31 2019

Compensation expense $ 11,000,000
Share premium share options $ 11,000,000

To record compensation expense for 2020 ( desember 31 2020)

Compensation expense $ 11,000,000
Share premium share options $ 11,000,000

01/06/2022 jika eksekutif membeli 2.000 saham dari 10.000 yang ditawarkan
Cash ( 6000 *2000) $ 12,000,000
Share premium share options(20%*22.000.000) $ 4,400,000
Share capital-ordinary $ 200,000
Share premium-ordinary $ 16,200,000

01/06/2022 jika eksekutif tidak membeli saham optiondari yang tersisa

Share premium-share options $ 17,600,000
Share premium-expired $ 17,600,000

2. Jurnal entries are required on january 1,1019

Unearned compensation $ 20,000
Share capital-ordinary $ 1,000
Share premium-ordinary $ 19,000

The jurnal entry at december 31,2019, Layer compeny recorded as compensation expense
Compensation expense $ 4,000
Unearned compensation $ 4,000

for example with a 5 year contract, an employee concerned with the layer company leaves
the company on december 31,2020:
Share capital-ordinary $ 1,000
Share premium-ordinary $ 19,000
Compensation expense $ 8,000
Unearned compensation $ 12,000

3.
Net income for year $ 210,000
Add :adjustment for intrest
(net of tax) on bonds $ 36,000
Adjusted income $ 246,000

Average number of share outstanding $ 100,000

Add :share issued upon assumsed condept $ 10,000
 Avarage number of share and potensi $ 110,000

basic erning per share : $ 210.000 / $ 100.000 = $ 2,1/share

Dilutive erning per share : $ 246.000/ $ 110.000 = $ 2,24/ share

4.
Present value of principal: $2,000,000 x 70843 (Table 6-2: n 4, 19%)
Present value of the interest payments: $120,000 x 3.23972 (Table 6-4; n = 4.1 = 9%)
Present value of the liability component

Fair value of convertible debt at date of issuance

Less: Fair value of liability component at date of issuance
Fair value of equity component at date of issuance

Journal entry
cash $ 2,000,000
Bonds payable $ 1,805,626
Share Premium-Conversion Equity $ 194,374

Settlement of Convertible Bonds

Repurchase. If the bonds are not changed at maturity, lily company makes the following entry to
pay off the convertible debtholders.
Bonds payable $ 2,000,000
Chas $ 2,000,000
Convertible Bonds.If the bonds are converted at maturity,Lily comany makes the following entry.
Share Premium-Conversion Equity $ 194,374
Bonds payable $ 2,000,000
Share Capital-Ordinary $ 500,000
Share Premium-Ordinary $ 1,694,374
ation expense

ompany leaves
 $ 1,416,860
$ 388,766
$ 1,805,626

$ 2,000,000
$ 1,805,626
$ 194,374

he following entry to

the following entry.