On January 1st 2020, the Simpson Company awarded restricted stock units (RSU) representing 30 million of its $1 par common shares to its 3 key officers, Homer, Bart and Madge The RSU is subject to forfeiture if employment is terminated within 3 years After the receipients of the RSU's satisfy the vesting requirement the company will distribute the shares. On January 1st 2020, the shares had a market price of $3 per share REQUIRED Determine the total compensation cost pertaining to the restricted stock units Prepare the appropriate journal entries for all 3 years
On January 1st 2020, the Simpson Company awarded restricted stock units (RSU) representing 30 million of its $1 par common shares to its 3 key officers, Homer, Bart and Madge The RSU is subject to forfeiture if employment is terminated within 3 years After the receipients of the RSU's satisfy the vesting requirement the company will distribute the shares. On January 1st 2020, the shares had a market price of $3 per share REQUIRED Determine the total compensation cost pertaining to the restricted stock units Prepare the appropriate journal entries for all 3 years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Owe
Transcribed Image Text:4
1
A
.
0
M
On January 1st 2020, the Simpson Company awarded restricted stock units (RSU) representing 30 million of its $1 par common shares to
its 3 key officers, Homer, Bart and Madge. The RSU is subject to forfeiture if employment is terminated within 3 years.
After the receipients of the RSU's satisfy the vesting requirement the company will distribute the shares. On January 1st 2020, the shares had a market price of $3 per share
REQUIRED
G
Determine the total compensation cost pertaining to the restricted stock units
Prepare the appropriate journal entries for all 3 years
N
0
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 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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