Question

On January 1, 2021, Summer Fashions Corp. awarded restricted stock units (RSUs) representing 5 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $9.00 per share. The journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023, would include a:

Answer 1

Following are the journal entry to the given question:

Step-by-step explanation:

Payment on stock capital limited 45

Stock Popular 5

Capital payments on surplus par 40