The Peach Corporation Provides Restricted Stock to Certain Executives

Essay

The Peach Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares on January 1, 2018, which vest in four years. The fair value of the shares is $14. No forfeitures are anticipated. Ignore taxes.
Required:
1. Determine the total compensation cost pertaining to the restricted stock.
2. Prepare the appropriate journal entry (if any) to record the award of restricted stock on January 1, 2018.
3. Prepare the appropriate journal entry (if any) to record compensation expense on December 31, 2018.