Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I will give thumbs up for correct JEs! Thank you! On January 1, 2024, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 15 million

image text in transcribed

image text in transcribed

I will give thumbs up for correct JEs! Thank you!

On January 1, 2024, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 15 million of its $1 pa 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 $6.00 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31,2025 . 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2026. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2026. Answer is not complete. Complete this question by entering your answers in the tabs below. Determine the total compensation cost pertaining to the RSUs. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Complete this question by entering your answers in the tabs below. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31 , 2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31 , 2025. 5. Prepare the appropriate journal entry to record compensation expense on December 31 , 2026. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Show less 4 Journal entry worksheet 45 Record the award of RSUs on January 1, 2024. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sawyer's Internal Auditing The Practice Of Modern Internal Auditing

Authors: Lawrence Sawyer, Mortimer Dittenhofer, James Scheiner

5th Edition

0894131788, 978-0894131783

More Books

Students also viewed these Accounting questions