Allied Paper Products, Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024, the company granted 16 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 $5 per share on the grant date. Required: Determine the total compensation cost pertaining to the restricted shares. Prepare the appropriate journal entries related to the restricted stock through December 31, 2025.
Allied Paper Products, Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024, the company granted 16 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 $5 per share on the grant date. Required: Determine the total compensation cost pertaining to the restricted shares. Prepare the appropriate journal entries related to the restricted stock through December 31, 2025.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Allied Paper Products, Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024, the company granted 16 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 $5 per share on the grant date.
Required:
- Determine the total compensation cost pertaining to the restricted shares.
- Prepare the appropriate
journal entries related to the restricted stock through December 31, 2025.
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