Question

Brief Exercise 16-08 On January 1, 2020 (the date of grant), Blue Corporation issues 1,700 shares of restricted stock to its executives. The fair value of these shares is $54,000, and their par value is $8,500. The stock is forfeited if the executives do not complete 3 years of employment with the company. Prepare journal entries for January 1, 2020, and on December 31, 2020, 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 o for th amounts.) Date Account Titles and Explanation Debit Credit

Answer 1

Date	Account titles and Explanation	Debit (in $ )	Credit (in $ )
Jan 1, 2020	Unearned compensation	$ 54,000
	Common stock		$ 8,500
	Paid in capital in excess of par- Common Stock - Bal Fig.		$ 45,500
	(To record the unearned compensation)
Dec. 31, 2020	Compensation expense ($ 54,000 / 3 Years )	$ 18,000
	Unearned compensation		$ 18,000
	(To record Compensation expense )