Answered step by step
Verified Expert Solution
Question
1 Approved Answer
E16.14 (Accounting for Restricted Stock) Lawson Company issues 50,000 shares of restricted stock to its CFO, on January 1, 2020. The stock has a fair
E16.14 (Accounting for Restricted Stock) Lawson Company issues 50,000 shares of restricted stock to its CFO, on January 1, 2020. The stock has a fair value of $1,100,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if CFO stays with the company for 4 years. The par value of the stock is $1. At December 31, 2020, the fair value of the stock is $1,750,000 Instructions (a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant) and December 31, 2021. (b) On August 1, 2023, the CFO leaves the company. Prepare the journal entry (if any) to account for this forfeiture
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started