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Exercise 19-2 (Algo) Restricted stock units [L019-1] On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.

Exercise 19-2 (Algo) Restricted stock units [L019-1] On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.

FINANCIAL ACCOUNTING
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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Exercise 19-2 (Algo) Restricted stock units [LO19-1] On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 202.2. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.
Transcribed Image Text:Exercise 19-2 (Algo) Restricted stock units [LO19-1] On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 202.2. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.
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