Exercise 19-2 (Algo) Restricted stock units [L019-1] On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.
Exercise 19-2 (Algo) Restricted stock units [L019-1] On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share. Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
I need requirements 4-6
![Exercise 19-2 (Algo) Restricted stock units [LO19-1]
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common
shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy
the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share.
Required:
1. Determine the total compensation cost pertaining to the RSUS.
2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021.
3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.
4. Prepare the appropriate journal entry to record compensation expense on December 31, 202.2.
5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d8d4208-64ec-4140-9b10-610fa2467ecc%2Fa4ec63b2-bc63-43eb-a473-b5d67a9e315b%2Fptb54ga_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 19-2 (Algo) Restricted stock units [LO19-1]
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 20 million of its $1 par common
shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy
the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.80 per share.
Required:
1. Determine the total compensation cost pertaining to the RSUS.
2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2021.
3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.
4. Prepare the appropriate journal entry to record compensation expense on December 31, 202.2.
5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2023.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education