Answer:
1.Total compensation cost pertaining to the RSUs
=$89.7 million
2.
No entry is made on the grant date
3 - 5
Dr Compensation expense 29.9
Cr Paid-in capital—restricted stock 29.9
6.
Dr Paid-in capital—restricted stock 89.7
Cr Common stock
Cr Paid-in capital—excess of par (remainder)66.7
Explanation:
Tru Fashions Corporation
1.Total compensation cost pertaining to the RSUs
23 million*market price of $3.90 per share
=$89.7 million
2.
No entry is made on the grant date
3 - 5
The entry is the same for years 2021 - 2023
Dr Compensation expense 29.9
($89.7 million ÷ 3 years)
Cr Paid-in capital—restricted stock 29.9
6.
Dr Paid-in capital—restricted stock 89.7
Cr Common stock (23 million shares x $1 par)23
Cr Paid-in capital—excess of par (remainder)66.7
