On January 1, 2017 (the date of grant), Skysong Corporation issues 2,000 shares

Question

On January 1, 2017 (the date of grant), Skysong Corporation issues 2,000 shares of restricted stock to its executives. The fair value of these shares is $72,000, and their par value is $10,000. The stock is forfeited if the executives do not complete 3 years of employment with the company Prepare journal entries for January 1, 2017, and on December 31, 2017, assuming the service period is 3 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Jan-1-17 Unearned Compensation 72000          Common Stock 10000          Paid-in Capital in Excess of Par 62000 31-Dec Compensation Expense 24000 =72000/3          Unearned Compensation 24000

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