Answer:
1. $108 million fair value of award
2. December 31, 2021
($ in millions)
Dr Compensation expenses 54
Cr Paid-in capital—restricted stock 54
December 31, 2022
Dr Compensation expenses54
Cr Paid-in capital—restricted stock 54
Dr Paid-in capital—restricted stock 108
Cr Common stock 18
Cr Paid-in capital—excess of par (remainder) 90
Explanation:
Allied Paper Products, Inc
1.
$6 fair value per share x 18million shares granted
= $108 million fair value of award
2. Journal entries
December 31, 2021
($ in millions)
Dr Compensation expense ($108 million ÷ 2 years) 54
Cr Paid-in capital—restricted stock 54
December 31, 2022
Dr Compensation expense ($108 million ÷ 2 years) 54
Cr Paid-in capital—restricted stock 54
Dr Paid-in capital—restricted stock 108
Cr Common stock (18 million shares x $1 par) 18
Cr Paid-in capital—excess of par (remainder) 90
