On January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 10 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 $18 per share on the grant date. At the date of grant, Vijay anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2025, 5% of the RSUs are forfeited due to executive turnover. Vijay 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, 2024, December 31, 2025, and December 31, 2026. Note: 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) View transaction list 1 2 Record the entry for compensation expense on December 31, 2024. Record the entry for compensation expense on December 31, 2025. Record the entry for compensation expense on December 31, 2026. 3 X Debit Credit
On January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 10 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 $18 per share on the grant date. At the date of grant, Vijay anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2025, 5% of the RSUs are forfeited due to executive turnover. Vijay 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, 2024, December 31, 2025, and December 31, 2026. Note: 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) View transaction list 1 2 Record the entry for compensation expense on December 31, 2024. Record the entry for compensation expense on December 31, 2025. Record the entry for compensation expense on December 31, 2026. 3 X Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 10 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 $18 per share on the grant date.
At the date of grant, Vijay anticipated that 6% of the recipients would leave the firm prior to vesting.
On January 1, 2025, 5% of the RSUs are forfeited due to executive turnover.
Vijay 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, 2024, December
31, 2025, and December 31, 2026.
Note: 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)
View transaction list
1
2
Record the entry for compensation expense on December
31, 2024.
Record the entry for compensation expense on December
31, 2025.
Record the entry for compensation expense on December
31, 2026.
3
X
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education