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E16-13B (Accounting for Restricted Stock) Holt Company issues 10,000 shares of restricted stock to its new CEO, on January 1, 2014. The stock has a fair value of $260,000 on this date. The service period related to this restricted stock is 5 years. Vestin

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E16-13B (Accounting for Restricted Stock) Holt Company issues 10,000 shares of restricted stock to its new CEO, on January 1, 2014. The stock has a fair value of $260,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if the CEO stays with the company for 5 years. The par value of the stock is $1. At December 31, 2015, the fair value of the stock is $180,000.;Instructions;(a) Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant) and December 31, 2015.;(b) On February 22, 2016, the CEO leaves the company. Prepare the journal entry (if any) to account for this forfeiture.

 

Paper#78645 | Written in 18-Jul-2015

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