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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On December 31, 2021, Skysong Company issues 139,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $11. The fair value of the SARS is estimated to be $5 per SAR on December 31, 2022; $2 on December 31, 2023; $11 on December 31, 2024; and $9 on December 31, 2025. The service period is 4 years, and the exercise period is 7 years. (a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan. (If the compensation decreases from prior year enter the amount as a negative number in the table e.g. -25,000 or (25,000).) Date 12/31/22 12/31/23 12/31/24 $ Fair Value 11 Cumulative Compensation Recognizable $ 11 Percentage Accrued % S % %
On January 1, 2021, a company granted stock options for 89,000 shares of its $12 par value common stock to its key employees. Each option entitles the employees to purchase one share of common stock at $22. The Black-Scholes option pricing model determines total compensation expense to be $220,000. The options are exercisable beginning January 1, 2024. On January 1, 2024, when the market price of the stock was $35 per share, 5,000 options were exercised. To record the 5,000 options exercised, the company should record Cash in the amount of $__________. (if no cash amount should be recorded, then enter 0).
Flounder Company issues 3,600 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2020. The stock has a fair value of $108.000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company for 4 years. The par value of the stock is $5. At December 31, 2021, the fair value of the stock is $148,000. (a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), and December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit yboard Home PgUp Nav ENG 7. Enter End PgDn Mv Up INTL e y PriSc F8 F9 F10 F11 F12 FI F2 F3 F4 F5 F6 F7 %23 & * 团
Allied Paper Products, Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2016, the company granted 16 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $5 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2017.
On January 1, 2018, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 parcommon shares to key personnel, subject to forfeiture if employment is terminated within three years. After therecipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date,the shares had a market price of $2.50 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, 2018.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2018.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2019.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2020.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares atDecember 31, 2020.
Sheffield Company issues 3,700 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2025. The stock has a fair value of $129,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company for 4 years. The par value of the stock is $5. At December 31, 2026, the fair value of the stock is $131,000. (a) Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit
Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At that time, it grants each executive the right to purchase 90 shares of its $5 par common stock at $41 per share after a 3-year service period. The value of each option is estimated to be $8.75 on the grant date. Based on its average employee turnover rate each year, Nadal expects that 2 executives will not vest in the plan. At the end of 2021, Nadal confirms that the actual turnover was the same as expected. On January 5, 2022, 3 executives exercise their options.Required: Prepare Nadal's journal entries for 2019 through 2022 in regard to its compensatory share option plan.
HELP ME
On January 1, 2020 (the date of grant), Windsor Corporation issues 2,300 shares of restricted stock to its executives. The fair value of these shares is $51,000, and their par value is $11,500. The stock is forfeited if the executives do not complete 3 years of employment with the company. Prepare journal entries for January 1, 2020, and on December 31, 2020, assuming the service period is 3 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date 1/1/20 12/31/20 Account Titles and Explanation Debit Credit
On January 1, 2024, Cori Ander Herbs granted restricted stock units (RSUs) representing 300,000 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 $13 per share on the grant date. At the date of grant, the company anticipated that 5% of the recipients would leave the firm prior to vesting. In 2025, 1% of the options are forfeited due to executive turnover. The company chooses the option not to estimate forfeitures. What amount should the company record as compensation expense for the year ended December 31, 2025?
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)
Windsor Company issues 8,500 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value of $425,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2024. The par value of the stock is $10. At December 31, 2020, the fair value of the stock is $407,000.(a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), and December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020Dec. 31, 2021July 25, 2024 Jan. 1, 2020Dec. 31,…