Blossom Company issues 12,200 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2025. The stock has a fair value of $610,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2029. The par value of the stock is $10. At December 31, 2025, the fair value of the stock is $331,000. I need help with part d, with only 2 journal entries. Part c is already completed and is only for your reference. Please answer correct ,complete and well explained

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Blossom Company issues 12,200 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2025. The stock has a fair value of $610,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2029. The par value of the stock is $10. At December 31, 2025, the fair value of the stock is $331,000.

I need help with part d, with only 2 journal entries. Part c is already completed and is only for your reference. Please answer correct ,complete and well explained 

 

(c)
Prepare the journal entries on January 1, 2025, and December 31, 2026, assuming that Blossom issued 12,200 shares of
restricted stock units instead of 12,200 shares of restricted stock. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the amounts. Record entries in the order displayed in the problem statement.)
late
2025
Your answer is correct.
1,2026
Account Titles and Explanation
No Entry
No Entry
Compensation Expense
Paid-in Capital-Restricted Stock Units
Debit
0
111
122000
Credit
122000
Transcribed Image Text:(c) Prepare the journal entries on January 1, 2025, and December 31, 2026, assuming that Blossom issued 12,200 shares of restricted stock units instead of 12,200 shares of restricted stock. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement.) late 2025 Your answer is correct. 1,2026 Account Titles and Explanation No Entry No Entry Compensation Expense Paid-in Capital-Restricted Stock Units Debit 0 111 122000 Credit 122000
(d)
* Your answer is incorrect.
On July 5, 2029, Tokar leaves the company. Prepare the journal entry to account for this forfeiture of restricted stock units. (List
debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no
entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
July
25,
2029
Common Stock
Unearned Compensation
Debit
122000
Credit
122000
Transcribed Image Text:(d) * Your answer is incorrect. On July 5, 2029, Tokar leaves the company. Prepare the journal entry to account for this forfeiture of restricted stock units. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation July 25, 2029 Common Stock Unearned Compensation Debit 122000 Credit 122000
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