Derrick company issues 4,000 shares of restricted stock to its cfo, dane yaping, on january 1, 2017. the stock has a fair value of $120,000 on this date. the service period related to this restricted stock is 4 years. vesting occurs if yaping stays with the company for 4 years. the par value of the stock is $5. at december 31, 2018, the fair value of the stock is $145,000. (a) prepare the journal entries to record the restricted stock on january 1, 2017 (the date of grant), and december 31, 2018. (credit account titles are automatically indented when amount is entered. do not indent manually. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)
Solved
Show answers
More tips
- P Philosophy Is Everything We Strive for Eventually Achieved and Destroyed?...
- S Society and Politics Understanding Politics and Its Role in the Development of Civilization...
- P Philosophy Why Did God Create Man and Place Him in Obscurity?...
- S Society and Politics Skoptsy: Who They Are and How They Perform Castration?...
- O Other Childhood Fears: What Many of Us Experienced...
- P Philosophy What is Something for you?...
- H Health and Medicine Why Do Humans Have One Heart?...
- P Philosophy Unbelievable stories of encounters with otherworldly forces...
- O Other How to Accidentally Get a Rare Coin with Your Change and How to Know Its Value?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
Answers on questions: Business
- B Business Kathy is a senior teacher in her school. she is conducting a group discussion between parents and teachers. her role is to ensure that each member of the group gets a chance...
- B Business The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020. Raw Materials Inventory 7/1/19 $50,400 Factory Insurance $5,100...
- B Business . What immediate and longer-term issues does Google’s censorship decision create? 2. Prior to the launch of Google.cn, what factors should Google have considered in reaching...
- B Business Chili s, the popular restaurant chain, supports St. Jude Children s Hospital annually by inviting its guests to color a pepper and make a $1 contribution to St. Jude. Chili...
- B Business Delisa invests office equipment with a fair market value of $70,000, delivery equipment with a fair market value of $89,000, and cash of $54,000. She owes $68,000, represented...
- B Business When inserted text overflows a text box in a document Palma you can create another text box in another part of the document. Order the steps for creating a link text Box...
- B Business Worker’s compensation pay for a. overtime b. medical care for an injury c. vacation time d. disaster relief...
- M Mathematics EASY MATTHHHHSSS help please...
- M Mathematics Oblicz objętość graniastosłupa o wymiarach podanych na rysunku...
- M Mathematics 3x y = 3 Slope intercept...
Ответ:
Explanation:
The journal entry is shown below:
On January 1, 2017:
Unearned compensation A/c Dr $120,000
To Common stock (4,000 × $3) $20,000
To Paid-in capital in excess of par value $100,000
(Being restricted stock is issued and the remaining balance is credited to the paid-in capital)
On December 31, 2018:
Compensation expenses A/c Dr $30,000
To Unearned compensation $30,000
(Being compensation expenses are recorded)
The compensation expenses is computed below:
= (Fair value of stock) ÷ (number of years)
= ($120,000) ÷ (4 years)
= $30,000
Ответ: