Lawson Company issues 50,000 shares of restricted stock to its CFO, on January 1, 2014. The stock

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Lawson Company issues 50,000 shares of restricted stock to its CFO, on January 1, 2014. The stock has a fair value of $1,100,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if CFO stays with the company for 4 years. The par value of the stock is $1. At December 31, 2014, the fair value of the stock is $1,750,000.

Instructions
(a) Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant) and December 31, 2015.
(b) On August 1, 2017, the CFO leaves the company. Prepare the journal entry (if any) to account for this forfeiture.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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