Question: Lopez Company issues 10 000 shares of restricted shares to its

Lopez Company issues 10,000 shares of restricted shares to its CFO, Juan Carlos, on January 1, 2010. The shares have a fair value of €500,000 on this date. The service period related to the restricted shares is 5 years. Vesting occurs if Carlos stays with the company for 6 years. The par value of the shares is €10. At December 31, 2010, the fair value of the shares is €450,000.

(a) Prepare the journal entries to record the restricted shares on January 1, 2010 (the date of grant), and December 31, 2011.
(b) On January 1, 2015, Carlos leaves the company. Prepare the journal entry (if any) to account for this forfeiture.

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  • CreatedJune 17, 2013
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