On January 1, 2024, Ball Brothers Enterprises (BBE) granted restricted stock units (RSUS) representing 40 million of its $1 par common shares to executives, subject to forfelture if employment is terminated within four 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 $10 per share on the grant date. At the date of grant, BBE anticipated that 5% of the recipients would leave the firm prior to vesting. Ignore taxes. Required: 1. Prepare the appropriate Journal entry to record compensation expense on December 31, 2024. 2. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. 3. During 2026, BBE revised its estimate of forfeltures from 5% to 10%. Prepare the appropriate Journal entry to record compensation expense on December 31, 2026. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2027.
On January 1, 2024, Ball Brothers Enterprises (BBE) granted restricted stock units (RSUS) representing 40 million of its $1 par common shares to executives, subject to forfelture if employment is terminated within four 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 $10 per share on the grant date. At the date of grant, BBE anticipated that 5% of the recipients would leave the firm prior to vesting. Ignore taxes. Required: 1. Prepare the appropriate Journal entry to record compensation expense on December 31, 2024. 2. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. 3. During 2026, BBE revised its estimate of forfeltures from 5% to 10%. Prepare the appropriate Journal entry to record compensation expense on December 31, 2026. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2027.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...
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