Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, C Corporation awarded restricted stock units (RSUs) representing 40 million of its $2 par common shares to key officers, subject to

On January 1, 2021, C Corporation awarded restricted stock units (RSUs) representing 40 million of its $2 par common shares to key officers, 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 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, 2021.

(3.) Prepare the appropriate journal entry to record compensation expense on December 31, 2021.

(4.) Prepare the appropriate journal entry to record compensation expense on December 31, 2022.

(5.) Prepare the appropriate journal entry to record compensation expense on December 31, 2023.

(6.) Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

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

Computer Accounting With QuickBooks 2021

Authors: Donna Kay

20th Edition

1264069197, 9781264069194

More Books

Students also viewed these Accounting questions

Question

How is the education level required for a position established?

Answered: 1 week ago

Question

Why is a job analysis important?

Answered: 1 week ago