On January 1, 2016, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par common shares to key personnel, 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. On the grant date, the shares had a market price of $2.50 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2016. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2016. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2017. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2018. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2018.
On January 1, 2016, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par
common shares to key personnel, 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. On the grant date,
the shares had a market price of $2.50 per share.
Required:
1. Determine the total compensation cost pertaining to the RSUs.
2. Prepare the appropriate
3. Prepare the appropriate journal entry to record compensation expense on December 31, 2016.
4. Prepare the appropriate journal entry to record compensation expense on December 31, 2017.
5. Prepare the appropriate journal entry to record compensation expense on December 31, 2018.
6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at
December 31, 2018.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
