Flint Company issues 43,000 shares of restricted stock to its CFO, on January 1, 2025. The...

 

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Flint Company issues 43,000 shares of restricted stock to its CFO, on January 1, 2025. The stock has a fair value of $903,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if the CFO stays with the company for 4 years. The par value of the stock is $1. At December 31, 2025, the fair value of the stock is $1,930,000. Assume that compensation expense is recognized through an annual adjustment process at year end. (a) Prepare the journal entries to related to the restricted stock on January 1, 2025 (the date of grant) and December 31, 2026. (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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 1/1/25 Unearned Compensation Common Stock Paid-in Capital in Excess of Par - Common Stock 12/31/26 Compensation Expense Unearned Compensation Debit 903000 225750 Credit 43000 860000 225750 (b) On August 1, 2028, the CEO 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 O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 8/1/28 Common Stock Debit 43000 Paid-in Capital in Excess of Par - Common Stock 860000 Compensation Expense Unearned Compensation eTextbook and Media List of Accounts Credit 45150C 45150C Attempts: 1 of 6 used Flint Company issues 43,000 shares of restricted stock to its CFO, on January 1, 2025. The stock has a fair value of $903,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if the CFO stays with the company for 4 years. The par value of the stock is $1. At December 31, 2025, the fair value of the stock is $1,930,000. Assume that compensation expense is recognized through an annual adjustment process at year end. (a) Prepare the journal entries to related to the restricted stock on January 1, 2025 (the date of grant) and December 31, 2026. (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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 1/1/25 Unearned Compensation Common Stock Paid-in Capital in Excess of Par - Common Stock 12/31/26 Compensation Expense Unearned Compensation Debit 903000 225750 Credit 43000 860000 225750 (b) On August 1, 2028, the CEO 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 O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 8/1/28 Common Stock Debit 43000 Paid-in Capital in Excess of Par - Common Stock 860000 Compensation Expense Unearned Compensation eTextbook and Media List of Accounts Credit 45150C 45150C Attempts: 1 of 6 used

Answer rating: 100% (QA)

Answer a 1125 Debit Unearned Compensation 903000 Credit Common Stock 43000 Credit Paidin Capi... View the full answer