USA Question about JE for shares owed at year-end

[2_bits]

Hello everybody,

300,000 shares were issued on Jan 1, 2015 to the CEO for his service during 2014 as his annual payment that are in his contract. Question is since they were owed on Dec 31, 2014 is a JE required, and if so what would it be? I don't want the shares to be included in the issued amount because they weren't issued until Jan 1, 2015.

Any help would be appreciated.

 

[kirby]

If the ceo was owed 300,000 shares at 12/31/14 then record entry 12/31/14 at market value of stock. Dr compensation expense Cr paid in capital.

When stock is issued dr the paid in capital entry and cr common stock / paid in capital depending on par value