BigTech, Inc. included the following disclosure note in an annual report: Share-Based Compensation (in part) . . . compensation expense related to these grants is based on the grant date fair value of the RSUs and is recognized on a straight-line basis over the applicable service period. The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2017: Number of Shares(in thousands) Weighted AverageGrant Date Fair ValueUnvested at December 31, 2016 115,644 $21.64 Granted 54,672 33.07 Vested (48,850) 17.22 Forfeited (16,167) 25.57 Unvested at December 31, 2017 105,299 $28.60 Required:1. Assuming a four-year vesting period, how much compensation expense did BigTech report in the year ended December 31, 2018, for the restricted stock units granted during the year ended December 31, 2017?2. Based on the information provided in the disclosure note, prepare the journal entry that summarizes the vesting of RSUs during the year ended December 31, 2017. (BigTech’s common shares have a par amount per share of $0.000006.)

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Answered: BigTech, Inc. included the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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BigTech, Inc. included the following disclosure note in an annual report:

Share-Based Compensation (in part)

. . . compensation expense related to these grants is based on the grant date fair value of the RSUs and is recognized on a straight-line basis over the applicable service period.

The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2017:

	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value
Unvested at December 31, 2016		115,644		$	21.64
Granted		54,672			33.07
Vested		(48,850	)		17.22
Forfeited		(16,167	)		25.57
Unvested at December 31, 2017		105,299		$	28.60

Required:

1. Assuming a four-year vesting period, how much compensation expense did BigTech report in the year ended December 31, 2018, for the restricted stock units granted during the year ended December 31, 2017?
2. Based on the information provided in the disclosure note, prepare the journal entry that summarizes the vesting of RSUs during the year ended December 31, 2017. (BigTech’s common shares have a par amount per share of $0.000006.)

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