Recording Entries for Restricted stock Share Award Plan Restricted stock awards for 7,000 shares of common stock (par $5) are granted to the CEO of Siri Inc. The restricted shares will be awarded to the CEO after 4 years from the date of grant. The shares vest if the CEO remains with the company for the full 4 years. The market price of the stock at the date of grant, January 2, 2020, is $20 per share and increases to $25 per share on December 31, 2020. Siri records forfeitures as they occur. Required a. Prepare the journal entry on the date of grant, January 2, 2020. b. Prepare the journal entry on December 31, 2020. c. On July 1, 2023, the CEO leaves Siri Inc. Prepare the entry on July 1, 2023, to account for the forfeiture of the restricted shares of stock by the CEO. Assume that the last adjusting entry recorded for the restricted stock was on December 31, 2022. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. a. Jan. 2, 2020 Unearned Compensation-Equity + 0 x 0✔ Common Stock + 0✔ 0x Paid-in Capital in Excess of Par-Common Stock 0✓ 0 x b. Dec. 31, 2020 Compensation Expense 0 x 0✔ Unearned Compensation-Equity 0✓ 0 x c. Jul. 1, 2023 Common Stock 0x 0 ✓ Paid-in Capital in Excess of Par-Common Stock 0 x 0 ✓ Compensation Expense 0 ✓ 0x Unearned Compensation-Equity 0✔ 0x ✓ → ✓ ◆ ✓ ♦ ✓ ✓ ♦ ◆
Recording Entries for Restricted stock Share Award Plan Restricted stock awards for 7,000 shares of common stock (par $5) are granted to the CEO of Siri Inc. The restricted shares will be awarded to the CEO after 4 years from the date of grant. The shares vest if the CEO remains with the company for the full 4 years. The market price of the stock at the date of grant, January 2, 2020, is $20 per share and increases to $25 per share on December 31, 2020. Siri records forfeitures as they occur. Required a. Prepare the journal entry on the date of grant, January 2, 2020. b. Prepare the journal entry on December 31, 2020. c. On July 1, 2023, the CEO leaves Siri Inc. Prepare the entry on July 1, 2023, to account for the forfeiture of the restricted shares of stock by the CEO. Assume that the last adjusting entry recorded for the restricted stock was on December 31, 2022. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. a. Jan. 2, 2020 Unearned Compensation-Equity + 0 x 0✔ Common Stock + 0✔ 0x Paid-in Capital in Excess of Par-Common Stock 0✓ 0 x b. Dec. 31, 2020 Compensation Expense 0 x 0✔ Unearned Compensation-Equity 0✓ 0 x c. Jul. 1, 2023 Common Stock 0x 0 ✓ Paid-in Capital in Excess of Par-Common Stock 0 x 0 ✓ Compensation Expense 0 ✓ 0x Unearned Compensation-Equity 0✔ 0x ✓ → ✓ ◆ ✓ ♦ ✓ ✓ ♦ ◆
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Recording Entries for Restricted Stock Share Award Plan
Restricted stock awards for 7,000 shares of common stock (par $5) are granted to the CEO of Siri Inc. The restricted shares will be awarded to the CEO after 4 years from the
date of grant. The shares vest if the CEO remains with the company for the full 4 years. The market price of the stock at the date of grant, January 2, 2020, is $20 per share
and increases to $25 per share on December 31, 2020. Siri records forfeitures as they occur.
Required
a. Prepare the journal entry on the date of grant, January 2, 2020.
b. Prepare the journal entry on December 31, 2020.
c. On July 1, 2023, the CEO leaves Siri Inc. Prepare the entry on July 1, 2023, to account for the forfeiture of the restricted shares of stock by the CEO. Assume that the last
adjusting entry recorded for the restricted stock was on December 31, 2022.
Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
Date
Account Name
Dr.
Cr.
a. Jan. 2, 2020
Unearned Compensation-Equity
0 x
0
Common Stock
0 x
0
0✔
Paid-in Capital in Excess of Par-Common Stock
0 x
b. Dec. 31, 2020 Compensation Expense
0 x
0
◆
0✔
0 x
Unearned Compensation-Equity
Common Stock
c. Jul. 1, 2023
◆
0 x
0✔
Paid-in Capital in Excess of Par-Common Stock
◆
0 x
0
Compensation Expense
0
0 x
Unearned Compensation-Equity
◆
0 x
Check
O
>
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