On December 31, 2017, Bulldog Company approved a restricted stock share plan for a number of employees wherein the restricted shares vest three years after the date of grant. On January 1, 2018, 100,000 shares of $1 par value stock were granted to key employees when the market price of the common stock was $30/share. The company initially estimates that 10% of the restricted shares will be forfeited and Bulldog's policy is to estimate forfeitures. On December 31, 2019, Bulldog changed the estimated forfeiture rate to 15%. On December 31, 2020, the restricted shares vested and the company made the adjusting journal entry to recognize 85,000 shares retained by employees at that time when the market price per share was $37.50. Required - Prepare any necessary journal entries for 2018-2020 related to Bulldog's restricted share plan. Ignore taxes.
On December 31, 2017, Bulldog Company approved a restricted stock share plan for a number of employees wherein the restricted shares vest three years after the date of grant. On January 1, 2018, 100,000 shares of $1 par value stock were granted to key employees when the market price of the common stock was $30/share. The company initially estimates that 10% of the restricted shares will be forfeited and Bulldog's policy is to estimate forfeitures. On December 31, 2019, Bulldog changed the estimated forfeiture rate to 15%. On December 31, 2020, the restricted shares vested and the company made the adjusting journal entry to recognize 85,000 shares retained by employees at that time when the market price per share was $37.50. Required - Prepare any necessary journal entries for 2018-2020 related to Bulldog's restricted share plan. Ignore taxes.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
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.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning