Question

Exercise 16-14 Flounder Company issues 11,300 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2017. The stock has a fair value of $565,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2021. The par value of the stock is $10. At December 31, 2017, the fair value of the stock is $584,000. (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.)

Answer 1

- Ans L-Jan - 2017 Unearned compensation 565,000 Common stock ($lox 1.300) 113,000 Paid-in Capital in excess of par 452,000 - common stock 31-Dec-2018 Compensatios Escpense ($565000 25) 113000 Unearned Compensatios 113,000