Question

Brief Exercise 16-7 On January 1, 2017, Sandhill Corporation granted 1,900 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $65 per share on the date of grant. The period of benefit is 2 years Prepare Sandhill's journal entries for January 1, 2017, and December 31, 2017 and 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 O for the amounts.) Account Titles and Explanation Date Debit Credit

Answer 1

Given data on January 1, 2017. Sandhill corporation goanted 1900 Shores 6 estricted $5 Pas value common stock to enecutive a the market price (fair value) of the stock is $65 per Share on the dare grant. s The period of benefit is a yeaos. January 1.2017 and December 31, 2017, December 31, 2018. Debit credit 133600 Date Account titles and Elevation 211/2017 Learned compensation Paid- in capital in excess of pard 114000 Common Stock 12/31/2017 compensation Expense 61750 Un earned compensa - tion Gla50 : 12181/2018 compensation Expense 61750 un coconed compensa tion 61750

1/1/2017 in earned compensation = 1900 X65 193500 Tunearned compensation =123500 common stock = 1900 X Common Stock Executives - 100%). 9500 1 common stock = 9500 Pridrio capita in excess of Par a mearned compensation - common stock 183500-9500 $114000 Paid- in capital in excess et par = $114000 of para 12/31/2017 pense- un earned compensation period of benefit is a years compensation 183500 2 261750 compensation Expense = 61750