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granted January ares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RS esting requirement, the company will distribute the shares. The common shares had a market price of $12 per share c ate. At the date of grant, Mest anticipated that 5% of the recipients would leave the firm prior to vesting. On January 1 e RSUS are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually (SUS) repres equired: to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2021, December 31, ecember 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first ace ot round intermediate calculations, Enter vour answers in millions (i.e.. 10.000.000 should be entered as 10).)

granted January ares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RS esting requirement, the company will distribute the shares. The common shares had a market price of $12 per share c ate. At the date of grant, Mest anticipated that 5% of the recipients would leave the firm prior to vesting. On January 1 e RSUS are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually (SUS) repres equired: to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2021, December 31, ecember 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first ace ot round intermediate calculations, Enter vour answers in millions (i.e.. 10.000.000 should be entered as 10).)

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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On January 1, 2021, David Mest Communications granted restricted stock units (RSUS) representing 25 million of its $1 par common shares to executives, 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. The common shares had a market price of $12 per share on the grant date. At the date of grant, Mest anticipated that 5% of the recipients would leave the firm prior to vesting. On January 1, 2022, 4% of the RSUS are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually occur. Required: 1. to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2021, December 31, 2022, and December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Transcribed Image Text:On January 1, 2021, David Mest Communications granted restricted stock units (RSUS) representing 25 million of its $1 par common shares to executives, 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. The common shares had a market price of $12 per share on the grant date. At the date of grant, Mest anticipated that 5% of the recipients would leave the firm prior to vesting. On January 1, 2022, 4% of the RSUS are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually occur. Required: 1. to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2021, December 31, 2022, and December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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