On December 31, 2016, Ferris Corporation granted 10,000 shares of its $1 par value common stock to its employees. The shares are restricted until 2 years of employment is completed (December 31, 2018). Market price of the common stock on that date of grant was $40 per share. Assume that 10 percent of the employees left (before vesting) on January 1, 2018, and 90 percent of the employees completed the vesting requirements on December 31, 2018. Use the Common Stock (Restricted) and the Deferred Compensation accounts as illustrated in the homework. 1. The journal entry to record the recognition of compensation expense on December 31, 2017 2. The journal entry on January 1, 2018 to record the forfeiture on 10 percent of the restricted shares (because the employees did not stay until vested) 3. The journal entries on December 31, 2018 to (1) recognize the remaining compensation expense, and (2) to award the restricted stock to the 90 percent of the employees who vested.
On December 31, 2016, Ferris Corporation granted 10,000 shares of its $1 par value common stock to its employees. The shares are restricted until 2 years of employment is completed (December 31, 2018). Market price of the common stock on that date of grant was $40 per share. Assume that 10 percent of the employees left (before vesting) on January 1, 2018, and 90 percent of the employees completed the vesting requirements on December 31, 2018. Use the Common Stock (Restricted) and the Deferred Compensation accounts as illustrated in the homework. 1. The journal entry to record the recognition of compensation expense on December 31, 2017 2. The journal entry on January 1, 2018 to record the forfeiture on 10 percent of the restricted shares (because the employees did not stay until vested) 3. The journal entries on December 31, 2018 to (1) recognize the remaining compensation expense, and (2) to award the restricted stock to the 90 percent of the employees who vested.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
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Question
![On December 31, 2016, Ferris Corporation
granted 10,000 shares of its $1 par value
common stock to its employees. The shares
are restricted until 2 years of employment is
completed (December 31, 2018). Market price
of the common stock on that date of grant
was $40 per share. Assume that 10 percent of
the employees left (before vesting) on
January 1, 2018, and 90 percent of the
employees completed the vesting
requirements on December 31, 2018. Use the
Common Stock (Restricted) and the Deferred
Compensation accounts as illustrated in the
homework.
1. The journal entry to record the recognition
of compensation expense on December 31,
2017
2. The journal entry on January 1, 2018 to
record the forfeiture on 10 percent of the
restricted shares (because the employees did
not stay until vested)
3. The journal entries on December 31, 2018
to (1) recognize the remaining compensation
expense, and (2) to award the restricted stock
to the 90 percent of the employees who
vested.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F907bfe1f-8558-486f-9af2-aef3626a8b5a%2Fb47b950e-6ebc-48cb-9ff6-940862c08a91%2F04pq45a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 31, 2016, Ferris Corporation
granted 10,000 shares of its $1 par value
common stock to its employees. The shares
are restricted until 2 years of employment is
completed (December 31, 2018). Market price
of the common stock on that date of grant
was $40 per share. Assume that 10 percent of
the employees left (before vesting) on
January 1, 2018, and 90 percent of the
employees completed the vesting
requirements on December 31, 2018. Use the
Common Stock (Restricted) and the Deferred
Compensation accounts as illustrated in the
homework.
1. The journal entry to record the recognition
of compensation expense on December 31,
2017
2. The journal entry on January 1, 2018 to
record the forfeiture on 10 percent of the
restricted shares (because the employees did
not stay until vested)
3. The journal entries on December 31, 2018
to (1) recognize the remaining compensation
expense, and (2) to award the restricted stock
to the 90 percent of the employees who
vested.
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