Derrick Company issues 4,000 shares of restricted - id400015344238 от cpcoolestkid4 24.03.2020 21:53

Question

Business: Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2020. The stock has a fair value of $120,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company for 4 years. (a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), and December 31, 2021.(b) On March 4, 2022, Yaping leaves the company. Prepare the journal entry (if any) to account for

cpcoolestkid4 · Accepted Answer

Dr Cash 1,166,400Cr Notes Receivable 1,000,000Cr Interest Revenue 166,400Explanation:To determine the net amount of the notes receivable that will be recorded, we must determine the present value of the note:present value = 1,166,400 / (1 + 8%)² = 1,166,400 / 1.1664 = 1,000,000...

Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping,

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