Question

The Peach Corporation provides restricted stock to certainexecutives. Under the plan, the company granted 30 million shareson January 1, 2013, which vest in four years. The fair value of theshares is $14. No forfeitures are anticipated. Ignore taxes. Youmust show your work for credit. (2 points).

Required:

1. Determine the total compensation cost pertaining to therestricted stock

2. Prepare the appropriate journal entry (if any) to record theaward of restricted stock on January 1, 20133.

3. Prepare the appropriate journal entry (if any) to recordcompensation expense on December 31, 2013.