I think you made mistakes in the dates which i have corrected in the explanations----Prepare the journal entries to record the restricted stock on "January 1, 2017" (the date of grant), and "December 31, 2018"
Answer: Please see answer in explanation column
Explanation:
To record unearned compensation
Date Account titles and explanation Debit Credit
Jan 1, 2020 Unearned compensation $565,000
To Common stock ( 11,300 shares × $10) $113,000
To Paid in capital in excess of par - common stock $452,000
To record the compensation expense
Date Account titles and explanation Debit Credit
Dec 31, 2020 Compensation expenses $113,000
To Unearned compensation $113,000
Calculation:
Compensation expenses =$565,000 ÷ 5 years= $113,000
To record the forfeiture
Date Account titles and explanation Debit Credit
July 25, 2021 Common stock $113,000
Paid in capital in excess of par - common stock $452,000
To Compensation expenses $113,000
To Unearned compensation $452,000
Calculation:
Common stock ( 11,300 shares × $10)= $113,000
To Compensation expenses $113,000 ($113,000 × 1 year) January 1, 2020-July 25, 2021,
Unearned compensation =fair value of $565,000 --Compensation expenses of $113,000 = $452,000
