On January 1, 2013 Jeans-R-Us Company awarded 15 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. One the date of the grant, the stock had a market price of $3 per share.

Required:

1. Determine the total compensation cost pertaining to the restricted shares.

2. Prepare the appropriate journal entry to record the award on January 1, 2013.