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).)
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