Holt Company issues 10,000 shares of restricted stock to its new CEO, on January 1, 2014. The

Question:

Holt Company issues 10,000 shares of restricted stock to its new CEO, on January 1, 2014. The stock has a fair value of $260,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if the CEO stays with the company for 5 years. The of the stock is $1. At December 31, 2015, the fair value of the stock is $180,000.

Instructions
(a) Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant) and December 31, 2015.
(b) On February 22, 2016, the CEO leaves the company. Prepare the journal entry (if any) to account for this forfeiture.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...