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Recording Entries for Restricted Stock Unit Plan and Forfeitures as incurred On December 31, 2020, 85M Inc, approved a restricted stock unit plan that included

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Recording Entries for Restricted Stock Unit Plan and Forfeitures as incurred On December 31, 2020, 85M Inc, approved a restricted stock unit plan that included the following general terms. Each restricted stock unit is equivalent to one share of $1 par value, common stock of 85M Inc. Restricted stock units vest three years after the date of grant, subject to forfeiture if employment is terminated prior to the end of the vesting period, Shares are distributed after the vesting period if the employee is still employed by the company. On December 31, 2020, 60,000 restricted stock units were granted to key employees under this plan when the market price of the common stock was $25 per share. The company estimates that 15% of the restricted stock units will be forfeited and the company's policy is to record forfeitures as incurred. Required a. Compute the total amount of compensation cost for the restricted stock unit plan. $ 1,500,000 b. Prepare the journal entry on the date of grant, December 31, 2020. c. Prepare the journal entry on December 31, 2021. d. In 2022, 4,000 shares are forfeited. Prepare the journal entry on December 31, 2022. e. Prepare the journal entries on December 31, 2023 to record compensation expense and distribution of shares, assuming an additional 800 shares are forfeited in 2023. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Note: Round your answers to the nearest whole dollar. Dr. Cr. 500,000 500,000 Date Account Name b. Dec 31, 2020 N/A N/A c. Dec 31, 2021 Compensation Expense Paid-in Capital-Restricted Stock d. Dec 31, 2022 Compensation Expense Paid-in Capital-Restricted Stock e. Dec 31, 2023 Compensation Expense Paid-in Capital --Restricted Stock To record compensation cost Dec 31, 2023 Paid-in Capital-Restricted Stock Common Stock Paid in Capital in Excess of Par-Common Stock To record distribution of shares OOOOOOOO sx sxs x OOOOOOOOOO XXXX

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