Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 18 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $6 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 18 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $6 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 18 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $6 per share on the grant date.
Required:
1. Determine the total compensation cost pertaining to the restricted shares.
2. Prepare the appropriate
Transcribed Image Text:1
Record the compensation expense.
Jote: Enter debits before credits.
Date
General Journal
Debit
Credit
December 31, 2021
Record entry
Clear entry
View general journal
Transcribed Image Text:Required 1
Required 2
Determine the total compensation cost pertaining to the restricted shares. (Enter your answer in millions (i.e., 10,000,000
should be entered as 10).)
Total compensation cost
million
< Required 1
Required 2 >
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