Assume that on January 1, 2020, Overton Company issues 10,000 shares of $10 par value restricted stock to its CEO, Amanda Clout. Overton's stock has a fair value of $40 per share on January 1, 2020. The restricted stock's service period is 5 years and vests on December 31, 2024.

(a) Prepare the journal entry Overton should make on the grant date (1/1/20).

(b) Prepare the journal entry Overton should make to record compensation expense at 12/31/20 (assuming Amanda Clout remains employed during this period).

(c) Prepare the journal entry Overton should make to record compensation expense at 12/31/21 (assuming Amanda Clout remains employed during this period).

(d) Prepare the journal entry Overton should make on January 1, 2022 if Amanda Clout leaves employment on that date and forfeits her rights to the stock.

Question 27 (12.5 points) Problem 2 - Restricted Stock Compensation Entries Assume that on January 1, 2020, Overton Company issues 10,000 shares of $10 par value restricted stock to its CEO, Amanda Clout. Overton's stock has a fair value of $40 per share on January 1. 2020. The restricted stock's service period is 5 years and vests on December 31, 2024. (a) Prepare the journal entry Overton should make on the grant date (1/1/20). (b) Prepare the journal entry Overton should make to record compensation expense at 12/31/20 (assuming Amanda Clout remains employed during this period). (c) Prepare the journal entry Overton should make to record compensation expense at 12/31/21 (assuming Amanda Clout remains employed during this period). (d) Prepare the journal entry Overton should make on January 1, 2022 if Amanda Clout leaves employment on that date and forfeits her rights to the stock