Business, 18.03.2021 01:20 Jasoncookies23

Vaughn Company issues 11,300 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value of $565,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2024. The par value of the stock is $10. At December 31, 2020, the fair value of the stock is $396,000. 1. Prepare the journal entries to record the restricted stock on January 1, 2017 (the date of grant), and December 31, 2018.
2. On July 25, 2021, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.

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I think you made mistakes in the dates which i have corrected in the explanationsPrepare the journal entries to record the restricted stock on "January 1, 2017" (the date of grant), and "December 31, 2018"

Please see answer in explanation column

Explanation:

To record unearned compensation

Date Account titles and explanation Debit Credit

Jan 1, 2020 Unearned compensation $565,000

To Common stock ( 11,300 shares × $10) $113,000

To Paid in capital in excess of par - common stock $452,000

To record the compensation expense

Date Account titles and explanation Debit Credit

Dec 31, 2020 Compensation expenses $113,000

To Unearned compensation $113,000

Calculation:

Compensation expenses =$565,000 ÷ 5 years= $113,000

To record the forfeiture

Date Account titles and explanation Debit Credit

July 25, 2021 Common stock $113,000

Paid in capital in excess of par - common stock $452,000

To Compensation expenses $113,000

To Unearned compensation $452,000

Calculation:

Common stock ( 11,300 shares × $10)= $113,000

To Compensation expenses $113,000 ($113,000 × 1 year) January 1, 2020-July 25, 2021,

Unearned compensation =fair value of $565,000 --Compensation expenses of $113,000 = $452,000

Answer from: Quest

do u ahve any choices

Answer from: Quest

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990. the answer is there are 990 different ways the positions can be filled by these applicants

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Vaughn Company issues 11,300 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020....