Calculating EPS and Recording Entries for Restricted Stock Awards

As an incentive to retain key employees, on January 1, the board of directors of Master Corp. granted restricted stock awards to 5 executives to acquire 1,500 shares each under the following terms.

Restricted stock awards vest in three years on December 31. Grantees must remain employed with Master Corp. to receive the common shares for 3 years (the requisite service period) for the shares to be fully vested.

Each stock award represents one share of $10 par, common stock of Master Corp.

Master Corp. has 30,000 common shares outstanding during the year. Net income for the year was $150,000. On the date of grant, the common shares were trading at $20 per share. During the year, the average price of its common stock was $20.

Required

Note: Round answers to the nearest whole number.

a. Prepare the journal entry on the date of grant, January 1.

*I gave all the information I have.

b. Prepare the journal entry on December 31. c. Calculate basic EPS. d. Calculate diluted EPS