DaBaby Company issues 4,000 shares of restricted stock to its CFO, Stallion Megan, on January 1, 2020. The stock has a fair value of $120,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Fierce stays with th company for 5 years. The par value of the stock is $5. At December 31, 2021, the fai value of the stock is $135,000. On January 3, 2023, Megan leaves the company Prepare the journal entry to account for this forfeiture. O Common Stock 20,000 Paid-in-Capital in excess of par Common Stock 100,000 Unearned Compensation 48,000 Compensation Expense 72,000 O Common Stock 120,000O Unearned Compensation 72,000 Compensation Expense 48,000 O Unearned Compensation 120,000 Common Stock 20,000 Paid-in-Capital in excess of par - Common Stock 100,000 O Common Stock 20,000 Paid-in-Capital in excess of par Common Stock 100,000 Unearned Compensation 72,000 Compensation Expense 48,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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DaBaby Company issues 4,000 shares of restricted stock to its CFO, Stallion Megan,
on January 1, 2020. The stock has a fair value of $120,000 on this date. The service
period related to this restricted stock is 5 years. Vesting occurs if Fierce stays with th
company for 5 years. The par value of the stock is $5. At December 31, 2021, the fai
value of the stock is $135,000. On January 3, 2023, Megan leaves the company
Prepare the journal entry to account for this forfeiture.
O Common Stock 20,000
Paid-in-Capital in excess of par Common Stock 100,00O
Unearned Compensation 48,000
Compensation Expense 72,000
O Common Stock 120,000
Unearned Compensation 72,000
Compensation Expense 48,000
O Unearned Compensation 120,000
Common Stock 20,000
Paid-in-Capital in excess of par - Common Stock 100,000
O Common Stock 20,000
Paid-in-Capital in excess of par Common Stock 100,000
Unearned Compensation 72,000
Compensation Expense 48,000
L
ASA
Transcribed Image Text:DaBaby Company issues 4,000 shares of restricted stock to its CFO, Stallion Megan, on January 1, 2020. The stock has a fair value of $120,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Fierce stays with th company for 5 years. The par value of the stock is $5. At December 31, 2021, the fai value of the stock is $135,000. On January 3, 2023, Megan leaves the company Prepare the journal entry to account for this forfeiture. O Common Stock 20,000 Paid-in-Capital in excess of par Common Stock 100,00O Unearned Compensation 48,000 Compensation Expense 72,000 O Common Stock 120,000 Unearned Compensation 72,000 Compensation Expense 48,000 O Unearned Compensation 120,000 Common Stock 20,000 Paid-in-Capital in excess of par - Common Stock 100,000 O Common Stock 20,000 Paid-in-Capital in excess of par Common Stock 100,000 Unearned Compensation 72,000 Compensation Expense 48,000 L ASA
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