Homework Help is Here – Start Your Trial Now!
Business
Accounting
Restricted stock awards for 3,000 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 b. Dec. 31, 2020 c. Jul. 1, 2023

Restricted stock awards for 3,000 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 b. Dec. 31, 2020 c. Jul. 1, 2023

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Drop Down list provided. Confused on "restricted stock"

Restricted stock awards for 3,000 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 b. Dec. 31, 2020 c. Jul. 1, 2023
Transcribed Image Text:Restricted stock awards for 3,000 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 b. Dec. 31, 2020 c. Jul. 1, 2023
Date Account Name Dr. Cr. a. Jan. 2, 2020 Cash Liability-Employee Stock Purchase Plan Preferred Stock b. Dec. 31, 202 Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Restricted Stock Paid-in Capital-Stock Options Paid-in Capital-Expired Stock Options Unearned Compensation-Equity c. Jul. 1, 2023 Compensation Expense N/A
Transcribed Image Text:Date Account Name Dr. Cr. a. Jan. 2, 2020 Cash Liability-Employee Stock Purchase Plan Preferred Stock b. Dec. 31, 202 Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Restricted Stock Paid-in Capital-Stock Options Paid-in Capital-Expired Stock Options Unearned Compensation-Equity c. Jul. 1, 2023 Compensation Expense N/A
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
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.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS