Question

Mann Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2018,...

Mann Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2018, the corporation granted 10 million of its $5 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market value of $10.3 per share on the date the award is granted.

Required:
1. Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares.
2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2019.

req. 1

Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Total compensation cost million

req. 2

journal 1.Record the compensation expense paid for restricted stock on December 31, 2018.

journal 2.Record the compensation expense paid for restricted stock on December 31, 2019.

journal 3.Record the issuing of shares at December 31, 2019.

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