On January 1, 2017 (the date of grant), Grouper Corporation issues 1,400 shares of restricted stock to its executives. The fair value of these shares is $60,000, and their par value is $7,000. The stock is forfeited if the executives do not complete 3 years of employment with the company. Prepare journal entries for January 1, 2017, and on December 31, 2017, assuming the service period is 3 years.