On January 1, 2011, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years

E 19-2 Restricted stock award plan

On January 1, 2011, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the grant date, the shares have a market price of $2.50 per share.

Required:
1. Determine the total compensation cost pertaining to the restricted shares.
2. Prepare the appropriate journal entry to record the award of restricted shares on January 1, 2011.
3. Prepare the appropriate journal entry to record compensation expense on December 31, 2011.
4. Prepare the appropriate journal entry to record compensation expense on December 31, 2012.
5. Prepare the appropriate journal entry to record compensation expense on December 31, 2013.
6. Prepare the appropriate journal entry to record the lifting of restrictions on the shares at December 31, 2013.

Click here for the solution: On January 1, 2011, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years

Smith Construction Company was awarded a contract to construct an interchange at the junction of Interstate 5 and US Highway 27 at a total contract price of $8,000,000

Smith Construction Company was awarded a contract to construct an interchange at the junction of Interstate 5 and US Highway 27 at a total contract price of $8,000,000. The estimated total costs to complete the project were $6,000,000.

Instructions
(a) Make the entry to record construction costs of $3,600,000, on construction in process to date.
(b) Make the entry to record progress billings of $2,000,000.
(c) Make the entry to recognize the profit that can be recognized to date, on a percentage-of-completion basis.

Click here for the solution: Smith Construction Company was awarded a contract to construct an interchange at the junction of Interstate 5 and US Highway 27 at a total contract price of $8,000,000