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Mann Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024, the corporation granted 10 million of its $5 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market value of $9.40 per share on the date the award is granted. Required: 1. Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2025.

Mann Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024, the corporation granted 10 million of its $5 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market value of $9.40 per share on the date the award is granted. Required: 1. Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2025.

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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Mann Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024, the corporation granted 10 million of its $5 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market value of $9.40 per share on the date the award is granted. Required: 1. Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2025. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the appropriate journal entries related to the restricted stock through December 31, 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal places (i.e., 5,500,000 should be entered as 5.5). General Journal 1 2 > Answer is complete but not entirely correct. Required 2 3 Date December 31, 202, Compensation expense Paid-in capital - restricted stock December 31, 202 Compensation expense Paid-in capital - restricted stock December 31, 202 Paid-in capital - restricted stock Common stock Paid-in capital - excess of par ** >> 333 Debit 47,000,000 X 47,000,000 X 94,000,000 X Credit 47,000,000 X 47,000,000 x 50,000,000 X 44,000,000
Transcribed Image Text:Mann Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024, the corporation granted 10 million of its $5 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market value of $9.40 per share on the date the award is granted. Required: 1. Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2025. Complete this question by entering your answers in the tabs below. Required 1 No Prepare the appropriate journal entries related to the restricted stock through December 31, 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal places (i.e., 5,500,000 should be entered as 5.5). General Journal 1 2 > Answer is complete but not entirely correct. Required 2 3 Date December 31, 202, Compensation expense Paid-in capital - restricted stock December 31, 202 Compensation expense Paid-in capital - restricted stock December 31, 202 Paid-in capital - restricted stock Common stock Paid-in capital - excess of par ** >> 333 Debit 47,000,000 X 47,000,000 X 94,000,000 X Credit 47,000,000 X 47,000,000 x 50,000,000 X 44,000,000
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