On January 1, 2021, Sweedle Company issues 6,000 shares of restricted stock to its CEO and 4,000 shares to its CFO. The stock has a fair value of $300,000 on this date. The service period related to this restricted stock is 3 years. The shares are subject to forfeiture if employment is terminated within three years. The company chooses to account for forfeitures when they actually occur. The par value of the stock is $10. a. Prepare the journal entries, if any, to record the restricted stock on January 1, 2021 (the date of grant), and December 31, 2021.
On January 1, 2021, Sweedle Company issues 6,000 shares of restricted stock to its CEO and 4,000 shares to its CFO. The stock has a fair value of $300,000 on this date. The service period related to this restricted stock is 3 years. The shares are subject to forfeiture if employment is terminated within three years. The company chooses to account for forfeitures when they actually occur. The par value of the stock is $10. a. Prepare the journal entries, if any, to record the restricted stock on January 1, 2021 (the date of grant), and December 31, 2021.
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...
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Transcribed Image Text:On January 1, 2021, Sweedle Company issues 6,000 shares of restricted stock to its CEO and 4,000 shares to its CFO. The
stock has a fair value of $300,000 on this date. The service period related to this restricted stock is 3 years. The shares are
subject to forfeiture if employment is terminated within three years. The company chooses to account for forfeitures when
they actually occur. The par value of the stock is $10.
a. Prepare the journal entries, if any, to record the restricted stock on January 1, 2021 (the date of grant), and December
31, 2021.
b. During 2022 the CFO leaves the company. Prepare the journal entry for December 31, 2022.
c. Prepare the journal entry for December 31, 2023.
d. Prepare the journal entry for January 1, 2024 (vesting period requirements met)
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