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

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

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On January 1, 2021, Summer Fashions Corp. awarded restricted stock
units (RSUS) representing 5 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 $9.00 per share. The journal entry to record the lifting
of restrictions on the RSUS and issuing shares at December 31, 2023,
would include a:
O Credit to Paid-in capital - restricted stock $45 million
O None of the options listed.
O Credit to Paid-in capital - restricted stock $15 million
O Debit to Paid-in capital - restricted stock $45 million
O Debit to Paid-in capital - restricted stock $15 million
• Previous

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On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.
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