Company issues 00 shares of restricted stock to its CF
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please provide correct complete and well explained answer this time
![Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2025. The stock has a fair value of
$120,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company
for 4 years. The par value of the stock is $5. At December 31, 2026, the fair value of the stock is $145,000.
(a)
Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. (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.)
ate
2025
Your answer is correct.
L2026
V
Account Titles and Explanation
Unearned Compensation
Paid-in Capital in Excess of Par - Common Stock
Common Stock
Compensation Expense
Unearned Compensation
Debit
120000
[][
30000
Credit
100000
20000
30000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2da59b79-efcb-4504-a5e9-dff0d8563be1%2F4944442b-f123-42ef-bb6b-73e8ad940c81%2F6fqo3jq_processed.png&w=3840&q=75)
Transcribed Image Text:Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2025. The stock has a fair value of
$120,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company
for 4 years. The par value of the stock is $5. At December 31, 2026, the fair value of the stock is $145,000.
(a)
Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. (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.)
ate
2025
Your answer is correct.
L2026
V
Account Titles and Explanation
Unearned Compensation
Paid-in Capital in Excess of Par - Common Stock
Common Stock
Compensation Expense
Unearned Compensation
Debit
120000
[][
30000
Credit
100000
20000
30000
Transcribed Image Text:(b)
Your answer is correct.
On March 4, 2027, Yaping leaves the company. Prepare the journal entry to account for this forfeiture. (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)
(c)
Date
Mar. 4,
2027
Account Titles and Explanation
Common Stock
Paid-in Capital in Excess of Par-Common Stock
Date
Jan 1, 2025
Unearned Compensation
Your answer is partially correct.
Dec 31, 2026
Compensation Expense
Account Titles and Explanation
Debit
Compensation Expense
20000
100000
Prepare the journal entries on January 1, 2025, and December 31, 2026, assuming that Derrick Issued 4,000 shares of restricted
stock units instead of 4,000 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.)
Debit
Credit
100
60000
60000
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education