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Prepare the journal entry to account for this forfeiture

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Reference no: EM131108163

1. (Accounting for Restricted Stock) Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2010. 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 for 5 years. The par value of the stock is $10. At December 31, 2010, the fair value of the stock is $450,000. 

(a) Prepare the journal entries to record the restricted stock on January 1, 2010 (the date of grant) andDecember 31, 2011.

(b) On July 25, 2014, Tokar leaves the company. Prepare the journal entry (if any) to account for this forfeiture.

Reference no: EM131108163

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