Shares: The common stock is divided into smaller units of equal value called as Shares and issued to the public, to raise funds.
To Explain: TheRestricted Stock, difference between Restricted Stocks and RSU, and determination and recording of compensation expense for restricted stock award plan.

Explanation of Solution
Restricted Stock: Restricted stock is the portion of shares held up by the management, to be issued for the employees, which are subject to some conditions.
Restricted Stock: Restricted stock is the portion of shares held up by the management, to be issued for the employees, which are subject to some conditions.
Restricted Stock Units (RSU): RSUs are a type of restricted stock which is held up for some time, before being issued to the employees. Further they do not oblige the employees to stay in the company. Till they are issued to the employee, the employer possesses the right.
The compensation expense for the restricted stock award plan is the fair value of the stock equal to the market value at the grant date. The compensation expense is the accrued fair value over the service period till the vesting date. However, this could be made in the form of cash, shares or at times, both.
Want to see more full solutions like this?
Chapter 19 Solutions
INTERMEDIATE ACCT.CUSTOM W/CONNECT
- Can you help me solve this general accounting question using valid accounting techniques?arrow_forwardI am trying to find the accurate solution to this general accounting problem with the correct explanation.arrow_forwardPlease provide the correct answer to this general accounting problem using accurate calculations.arrow_forward
- Please explain the solution to this general accounting problem using the correct accounting principles.arrow_forwardCost of Trade Credit A large retailer obtains merchandise under the credit terms of 3/20, net 35, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places. 25.10 is incorrect.arrow_forwardCan you explain the correct approach to solve this general accounting question?arrow_forward
- Please provide the correct answer to this general accounting problem using valid calculations.arrow_forwardPlease provide the accurate answer to this general accounting problem using appropriate methods.arrow_forwardI am looking for the correct answer to this general accounting problem using valid accounting standards.arrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningFinancial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning


