On January 1, 2014 (the date of grant), Lutz Corporation issues 2,780 shares of restricted stock to its executives. The fair value of these shares is $78,300, and their par value is $11,400. The stock is forfeited if the executives do not complete 3 years of employment with the company. Prepare journal entries for January 1, 2014, and on December 31, 2014, assuming the service period is 3 years.