Question

On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 20 million of...

On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 20 million of its $1 par common shares to executives, 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. The common shares had a market price of $15 per share on the grant date. At the date of grant, Mest anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2022, 5% of the RSUs are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually occur.

Required:

1. to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2021, December 31, 2022, and December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 40 million of...
On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, 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. The common shares had a market price of $15 per share on the grant date. At the date of the grant, Mest anticipated that 6% of the recipients would leave the...
On January 1, 2018, David Mest Communications granted restricted stock units (RSUs) representing 25 million of...
On January 1, 2018, David Mest Communications granted restricted stock units (RSUs) representing 25 million of its $1 par common shares to executives, 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. The common shares had a market price of $18 per share on the grant date. At the date of grant, Mest anticipated that 5% of the recipients would leave the firm...
On January 1, 2021, M.T. Toombe Mausoleum granted restricted stock units (RSUs) representing 60 million of...
On January 1, 2021, M.T. Toombe Mausoleum granted restricted stock units (RSUs) representing 60 million of its $1 par common shares to executives, 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. The common shares had a market price of $15 per share on the grant date. At the date of grant, Toombe anticipated that 5% of the recipients would leave the firm...
On January 1, 2018, Liberty Company granted restricted stock units (RSUs) representing 40 million of its...
On January 1, 2018, Liberty Company granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives. The RSUs are subject to forfeiture if employment is terminated within four years. The company will distribute the shares after the recipients of the RSUs satisfy the vesting requirement. The common shares had a market price of $10 per share on the grant date. At the date of grant, Liberty anticipated that 5% of the recipients would leave...
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 19 million of...
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 19 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 $5.10 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal...
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 14 million of...
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 14 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 $6.30 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal...
On January 1, 2018, Cobbler Corporation awarded restricted stock units (RSUs) representing 27.3 million of its...
On January 1, 2018, Cobbler Corporation awarded restricted stock units (RSUs) representing 27.3 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 $6.8 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. to 6. Prepare the appropriate...
Company A granted restricted stock units (RSUs) representing 14 million of its $1 par common shares...
Company A granted restricted stock units (RSUs) representing 14 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within 4 years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $20 per share on the grant date. Ignoring taxes, what is the decrease in earnings in the year after the RSUs are granted to executives? Round to the...
As part of its stock-based compensation package, on January 1, 2018, Weldon Well Supplies granted restricted...
As part of its stock-based compensation package, on January 1, 2018, Weldon Well Supplies granted restricted stock units (RSUs) representing 100,000 $1 par common shares. At exercise, holders of the RSUs are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6.7...
On January 1, 2021, Adams-Meneke Corporation granted 120 million incentive stock options to division managers, each...
On January 1, 2021, Adams-Meneke Corporation granted 120 million incentive stock options to division managers, each permitting holders to purchase one share of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, currently $42 per share. The fair value of the options, estimated by an appropriate option pricing model, is $3 per option. Management’s...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT