On December 31, 2014, the following accounts appear in the books of Davidson, Inc. Common stock, $10 par APIC-Common stock 10% Preferred stock, $100 par. Cumulative, and fully participating APIC- Preferred stock Retained earnings $3,000,000 4,000,000 1,000,000 800,000 6,000,000 14,800,000 (250,000) 14.550,000 Less: Treasury stock (at cost) (10,000 shares) Required: Make journal entries, if any, to record the following SEQUENTIAL transactions: 1. On January 1, 2015. Davidson issued 10,000 shares of restricted common stock to its CEO. The stock has a fair value of $15 per share, and the service period related to the restricted stock is four years. (2 points) 2. On January 1, 2015. Davidson creates a compensatory stock option plan for its 50 key employees. Each employee gets 300 options. Each option entitles the executive to purchase one share of common stock for $40 per sh after working for the company for a minimum period of five vears. Davidson estimates that each option has a value of $10. Prepare the journal entry, if any, to record the enactment of the plan on January 1, 2015. (2 points) 3. On April 30, 2015, Davidson reissued 4,000 shares in treasury at $20 per share. (2 Points) 4. On May 31, 2015, Davidson reissued the remaining 6,000 shares in treasury at $30 per share. (2 Points) 5. Prepare the 2015 year-end journal entry, if any, relating to the stock compensation plan of Davidson. (3 Points) 6. Prepare the 2015 year-end journal entry, if any, relating to the restricted stock issued by Davidson to its CEO on January 1, 2015. (3 Points) On December 31, 2014, the following accounts appear in the books of Davidson, Inc. Common stock, $10 par APIC-Common stock 10% Preferred stock, $100 par. Cumulative, and fully participating APIC- Preferred stock Retained earnings $3,000,000 4,000,000 1,000,000 800,000 6,000,000 14,800,000 (250,000) 14.550,000 Less: Treasury stock (at cost) (10,000 shares) Required: Make journal entries, if any, to record the following SEQUENTIAL transactions: 1. On January 1, 2015. Davidson issued 10,000 shares of restricted common stock to its CEO. The stock has a fair value of $15 per share, and the service period related to the restricted stock is four years. (2 points) 2. On January 1, 2015. Davidson creates a compensatory stock option plan for its 50 key employees. Each employee gets 300 options. Each option entitles the executive to purchase one share of common stock for $40 per sh after working for the company for a minimum period of five vears. Davidson estimates that each option has a value of $10. Prepare the journal entry, if any, to record the enactment of the plan on January 1, 2015. (2 points) 3. On April 30, 2015, Davidson reissued 4,000 shares in treasury at $20 per share. (2 Points) 4. On May 31, 2015, Davidson reissued the remaining 6,000 shares in treasury at $30 per share. (2 Points) 5. Prepare the 2015 year-end journal entry, if any, relating to the stock compensation plan of Davidson. (3 Points) 6. Prepare the 2015 year-end journal entry, if any, relating to the restricted stock issued by Davidson to its CEO on January 1, 2015. (3 Points)