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 ofrestricted stock units instead of 12,200 shares of restricted stock. (List all debit entries before credit entries. Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter o for the amounts. Record entries in the order displayed in the problem statement.)late2025Your answer is correct.1,2026Account Titles and ExplanationNo EntryNo EntryCompensation ExpensePaid-in Capital-Restricted Stock UnitsDebit0111122000Credit122000 (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. (Listdebit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts.)Date Account Titles and ExplanationJuly25,2029Common StockUnearned CompensationDebit122000Credit122000

In the case of restricted stock, employees receive non-transferable shares with restrictions on when…

Answered: Blossom Company issues 12,200 shares of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

(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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