On January 1, 2017, Smart Corporation issues 10,000 shares of $5 par restricted stock to an executive. The market value of unrestricted shares of the same stock on the date of issue is $25 and there is a four-year vesting period. On January 1, 2018, the executive leaves and forfeits the restricted stock award. Record the journal entries for the issuance of the restricted shares, compensation expense for the first year, and forfeiture of the restricted stock.

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The Answer of On January 1, 2017, Smart Corporation issues 10,000 shares of $5 par restricted stock to an executive. The market value of unrestricted shares of the same stock on the date of issue is $25 and there is a four-year vesting period. On January 1, 2018, the executive leaves and forfeits the restricted stock award. Record the journal entries for the issuance of the restricted shares, compensation expense for the first year, and forfeiture of the restricted stock.

On January 1, 2017, Smart Corporation Issues 10,000 Shares of $5