On January 1, 2014 (the date of grant), Lutz Corporation issues 2,070 shares of restricted stock to its executives. The fair value of these shares is $111,600, and their par value is $11,200. 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 December 31, 2014, assuming the service period is 3 years.

Do not copy from Chegg and give complete answer with explanation