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Question - Accounting for Restricted Stock - Lawson Company issues 50,000 shares of restricted stock to its CFO, on January1,2020.The stock has a fair value of $1,100,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if CFO stays with the company for 4 years. The par value of the stock is $1. At December 31, 2020, the fair value of the stock is $1,750,000.
Required -
(a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant) and December 31, 2021.
(b) On August 1, 2023, the CFO leaves the company. Prepare the journal entry (if any) to account for this forfeiture.
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