Answer the following questions. Assume each question is independent from the last. Please type using a word processing program and bring a printed copy to class. Write as much or as little as you feel necessary to answer each question to the best of your ability. You may use all available resources to complete this case e.g., lecture slides, notes, your book, and the Accounting Standards Codification. Collaboration with others in your group is allowed to the extent that it is helpful. How you work together is up to you however, I encourage everyone in the group to take at least some part for every question. Please turn in only one finished assignment for each group. Use appropriate citations where relevant and according to your professional judgment. For questions requiring use of the codification, please use the following style:

1) Cite the ASC down to the paragraph. For example, (ASC 330-10-05-01)

2) Copy-paste the paragraph you cite from the codification into the word document. This is what I demonstrated in class.

3) Interpret the codification paragraph into plain English as best you can. In other words, how would you explain the appropriate accounting treatment to a colleague, boss, or business partner who has a basic understanding of accounting? You may (and are encouraged to) use debits and credits or T-accounts to illustrate the accounting if appropriate.

1. You join the accounting department of a major tech firm after graduation and are asked to assist in preparing end of year adjusting entries to prepare the firms financial statements for the end of the fiscal year. One major item you discover is a large part of the firms compensation expense is for stock grants and restricted stock units (RSUs). You are unsure how to account for these and so turn to the codification for guidance. What is the accounting for these forms of compensation and how are they presented on the financial statements?

2. After graduation, you work for a few years at a major accounting firm and advance to Senior. However, as part of this role, you start working on a client that is different from your other background: specifically, a major bank located in San Francisco. This bank primarily takes deposits from retail and business customers and lends money out to others. The accounting seems to be completely different from what you are used to and so you go to the Codification to find out what the accounting standards for this industry consist of. Describe the major classes of transactions undertaken by this sort of entity and how they should be accounted for.