On January 1, 2021, Summer Fashions Corp. awarded restricted stockunits (RSUS) representing 5 million of its $1 par common shares to keypersonnel, subject to forfeiture if employment is terminated within threeyears. After the recipients of the RSUS satisfy the vesting requirement,the company will distribute the shares. On the grant date, the shares hada market price of $9.00 per share. The journal entry to record the liftingof restrictions on the RSUS and issuing shares at December 31, 2023,would include a:O Credit to Paid-in capital - restricted stock $45 millionO None of the options listed.O Credit to Paid-in capital - restricted stock $15 millionO Debit to Paid-in capital - restricted stock $45 millionO Debit to Paid-in capital - restricted stock $15 million• Previous

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: On January 1. 2

Business

Accounting

On January 1. 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 10 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 $7.50 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, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 25 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 $3.30 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, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023. Please help and show formula
On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, 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. The common shares had a market price of $12 per share on the grant date. At the date of grant, Mest anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2022, 5% of the RSUs are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually occur.Required:1. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.2. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
On January 1, 2018, VKI Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 parcommon shares to key personnel, subject to forfeiture if employment is terminated within three years. After therecipients 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, 2018.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2018.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2019.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2020.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares atDecember 31, 2020.
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, 2024, Cori Ander Herbs granted restricted stock units (RSUs) representing 300,000 of its $1 par common shares to executives, 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. The common shares had a market price of $13 per share on the grant date. At the date of grant, the company anticipated that 5% of the recipients would leave the firm prior to vesting. In 2025, 1% of the options are forfeited due to executive turnover. The company chooses the option not to estimate forfeitures. What amount should the company record as compensation expense for the year ended December 31, 2025?
PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.Required:1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021?2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021?
On January 1, 2024, Marguerite DeVille Company granted restricted stock units (RSUS) representing 450,000 of its $1 par common shares to executives, 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. The common shares had a market price of $15 per share on the grant date. At the date of grant, DeVille anticipated that 4% of the recipients would leave the firm prior to vesting. In 2025, 2% of the options are forfeited due to executive turnover. DeVille chooses the option to estimate forfeitures. What amount should DeVille record as compensation expense for the year ended December 31, 2025? Multiple Choice $112,500 $90,000 $2,160,000
HELP ME
n January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 50 million of its $1 par common shares to executives, 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. The common shares had a market price of $15 per share on the grant date. At the date of grant, Mest anticipated that 5% of the recipients would leave the firm prior to vesting. On January 1, 2022, 4% of the RSUs are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually occur. Required: 1. to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2021, December 31, 2022, and December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions (i.e.,…
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 18 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $6 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares.2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 16 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $5 per share on the grant date.Required:1. Determine the total compensation cost pertaining to the restricted shares.2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.