medium · Financial Accounting accounting-cycle-financial-statements
In a period of 3 years, a company recognizes $100,000 of total stock-based compensation expense. At the end of year $3, 10,000 shares ($1 par) are issued upon vesting.
What is the final entry to record the share issuance?
- Debit Cash $100,000; Credit Common Stock $10,000; Credit APIC $90,000 received in cash from employee
- Debit APIC — Equity Awards $100,000; Credit Common Stock $10,000; Credit APIC — Common $90,000
- Debit Compensation Expense $100,000 recognized all in year 3; Credit Common Stock $100,000
- Debit Retained Earnings $100,000; Credit Common Stock $100,000 issued at par value this year
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