On 1-1-2021 under its restricted stock unit (RSU) plan, Waldner Corporation granted restricted stock units (RSUS) representing 10,000 shares of Wilder's common stock to key employees. The vesting period for the RSUS is from 1-1-2021 until 12-31-2023. The common stock has a par value of $2 per share. The RSU plan will be settled with cash on 12-31-2023. The market price of the stock (i.e., unrestricted share) fluctuated as shown below. Market Price of a Share of Stock $8 $10 $9 $11 Date 1-1-2021 12-31-2021 12-31-2022 12-31-2023

On 1-1-2021 under its restricted stock unit (RSU) plan, Waldner Corporation granted restricted stock units (RSUS) representing 10,000 shares of Wilder's common stock to key employees. The vesting period for the RSUS is from 1-1-2021 until 12-31-2023. The common stock has a par value of $2 per share. The RSU plan will be settled with cash on 12-31-2023. The market price of the stock (i.e., unrestricted share) fluctuated as shown below. Market Price of a Share of Stock $8 $10 $9 $11 Date 1-1-2021 12-31-2021 12-31-2022 12-31-2023

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 15E

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Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
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