Luau Company issues 5,000 shares of restricted stock to its CFO, Sasha Fierce, on January 1, 2020. The stock has a fair value of $148,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Fierce stays with the company for 5 years. The par value of the stock is $5. At December 31, 2021, the fair value of the stock is $169,000. Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), December 31, 2021, December 31, 2022. On February 1, 2023, Fierce leaves the company. Prepare the journal entry to account for this forfeiture. 2. General Journal Debit Credit

Luau Company issues 5,000 shares of restricted stock to its CFO, Sasha Fierce, on January 1, 2020. The stock has a fair value of $148,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Fierce stays with the company for 5 years. The par value of the stock is $5. At December 31, 2021, the fair value of the stock is $169,000. Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), December 31, 2021, December 31, 2022. On February 1, 2023, Fierce leaves the company. Prepare the journal entry to account for this forfeiture. 2. General Journal Debit Credit

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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HELP ME
On January 1, 2021, when a company's shares were selling in the market for $ 50 per share, the company granted 100,000 restricted shares to various executives. The restriction would be lifted on December 31, 2025. At the beginning of 2024, 10% of executives resigned from the company. REQUIRED: 1. Prepare the wage entries for the dates of January 1, 2021 and December 31, 2023. 2. Prepare the wage entries for December 31, 2024 and 2025.
On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon the employees’ remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2021, 30 employees have left and it is expected that on the basis of weighted average probability, a further 30 employees will leave before the of the three-year period. On December 31, 2022, only 20 employees actually left and all of the share options are exercised on such date. How much is the compensation expense that should be recognized for 2022?A . 500,000 B. 880,000 C. 380,000 D. 470,000
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On January 1, 2021, Sweedle Company issues 6,000 shares of restricted stock to its CEO and 4,000 shares to its CFO. The stock has a fair value of $300,000 on this date. The service period related to this restricted stock is 3 years. The shares are subject to forfeiture if employment is terminated within three years. The company chooses to account for forfeitures when they actually occur. The par value of the stock is $10. a. Prepare the journal entries, if any, to record the restricted stock on January 1, 2021 (the date of grant), and December 31, 2021. b. During 2022 the CFO leaves the company. Prepare the journal entry for December 31, 2022. c. Prepare the journal entry for December 31, 2023. d. Prepare the journal entry for January 1, 2024 (vesting period requirements met)
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