Homework Help is Here – Start Your Trial Now!
Business
Accounting
"E15.13 (LO 3) (Accounting for Restricted Stock) 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. Instructions Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture. 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. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture of restricted stock units."

"E15.13 (LO 3) (Accounting for Restricted Stock) 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. Instructions Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture. 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. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture of restricted stock units."

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Dog

"E15.13 (LO 3) (Accounting for Restricted Stock) 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. Instructions Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture. 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. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture of restricted stock units."
Transcribed Image Text:"E15.13 (LO 3) (Accounting for Restricted Stock) 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. Instructions Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture. 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. On March 4, 2027, Yaping leaves the company. Prepare the journal entry (if any) to account for this forfeiture of restricted stock units."
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS