Question

On January 1, 2020 (the date of grant), Coronado Corporation issues 1,600 shares of restricted stock to its executives. The fair value of these shares is $57,000, and their par value is $8,000. 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 0 for the amounts.)

Answer 1

Date	Account titles and Explanation	Debit (in $ )	Credit (in $ )
Jan 1, 2020	Unearned compensation	$ 57,000
	Common stock		$ 8,000
	Paid in capital in excess of par- Common Stock - Bal Fig.		$ 49,000
	(To record the unearned compensation)
Dec. 31, 2020	Compensation expense ($ 57,000 / 3 Years )	$ 19,000
	Unearned compensation		$ 19,000
	(To record Compensation expense )