PART A

PART B

PART C

On September 1, YR01 Macy's Inc. granted restricted stock to two officers. Officer No. 1 was granted 100 shares of $5 par common stock and officer No. 2 was granted 50 shares of $5 par common stock. The service period for these shares is the twoyear period of 9-1-YR01 to 8-31-YR03. The shares vest on 8-31-YR03 if the officer is still employed with the company. The company's yearend is December 31st, and company accounting policy is to record adjusting journal entries once a year at yearend. Due to the small number of officers receiving restricted stock, it is not possible to accurately estimate future forfeitures. As a result, company policy is to record forfeitures in the month of their occurrence. During the service period, the market price of the company's common stock was as follows: Officer No. 1 remained employed with the company for the full service period and received his stock at the vesting date. Officer No. 2 left the company on March 1, YR03 and forfeited his stock. The joumal entry at the grant date of the restricted stock is (round amounts to the nearest dollar): e. For restricted stock, no entry is made at the date of grant. The amount of expense recorded at 1231YR01 is (round amounts to the nearest dollar): a. $200 b. $250 c. $600 d. $750 e. None of the values are correct The journal entry recorded on March 1, YR 03 when Officer No. 2 left the company and forfeited his stock was round amounts to the nearest dollar): a. Restricted Stock 600 RestrictedStockExpenseDeferredCompensation400200 b. Common Stock 250 PIC - Common Stock 150 Compensation Expense 267 Unearned Compensation - Equity 133 c. Common Stock Distributable 250 PIC - Common Stock 150 Restricted Common Stock 400 d. Common Stock Distributable 250 PIC - Common Stock 350 Restricted Common Stock 600 e. None of the above