Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2014. The stock has a fair value of $500,000 on this da
Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2014. The stock has a fair value of $500,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until
\r\nDecember 31, 2018. The par value of the stock is $10. At December 31, 2014, the fair value of the stock is $450,000.
\r\nInstructions
\r\n(a) Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant), and
\r\nDecember 31, 2015.
\r\n(b) On July 25, 2018, Tokar leaves the company. Prepare the journal entry (if any) to account for this forfeiture.