Cartel Products Inc.offers a restricted stock award plan to its vice presidents.On January 1,2016,the corporation granted 12 million of its $1 par common shares,subject to forfeiture if employment is terminated within two years.The common shares have a market value of $6 per share on the date the award is granted.
Required:
(1. )Assume that no shares are forfeited.Determine the total compensation cost pertaining to the restricted shares.
(2. )Prepare the appropriate journal entries related to the restricted stock through December 31,2017.

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The Answer of Cartel Products Inc.offers a restricted stock award plan to its vice presidents.On January 1,2016,the corporation granted 12 million of its $1 par common shares,subject to forfeiture if employment is terminated within two years.The common shares have a market value of $6 per share on the date the award is granted.
Required:
(1. )Assume that no shares are forfeited.Determine the total compensation cost pertaining to the restricted shares.
(2. )Prepare the appropriate journal entries related to the restricted stock through December 31,2017.