On January 1, 2021, La-Dee-Da Company awarded 15 million of its $1 par common shares to key officers, subject to forfeiture if employment is terminated within three years. On the date of the grant, the stock had a market price of S3 per share. 

Required:

A. Determine the total compensation cost pertaining to the restricted shares. 

B. Prepare the appropriate journal entry to record the award on January 1, 2021. 

C. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 

D. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.

 E. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 

F. Prepare the appropriate journal entry to record the lifting of restrictions on December 31, 2023.

Answer rating: 100% (QA)

Answer 1 Numbers of restricted Shares 15 Millions Market value of shares on ... View the full answer