Question

Exercise 16-13

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Marigold Company issues 4,200 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2020. The stock has a fair value of $129,000 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, 2021, the fair value of the stock is $146,000.

(a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), and December 31, 2021. (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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020Dec. 31, 2021Mar. 4, 2022
Jan. 1, 2020Dec. 31, 2021Mar. 4, 2022

(b) On March 4, 2022, Yaping leaves the company. Prepare the journal entry to account for this forfeiture. (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.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 4, 2022

Answer 1

Credit Debit $ 129,000 Date | Account titles and explaination 01-01-20 Unearned Compensation Common stock Paid in capital excess of par-common stock $ 21,000 (4200*5) $ 108,000 $ 32,250 (129000/4) 31-12-21 Compensation Expenses Unearned Compensation $ 32,250 $ 21,000 $ 108,000 04-03-22 Common stock Paid in capital excess of par-common stock Compensation Expenses Unearned Compensation $ 64,500 (2*32250) $ 64,500