On January $1$ of the current year, the board of directors of Bunting Inc. granted restricted stock awards to $10$ key

employees to acquire $2,000$ shares each under the following terms.

$$ Restricted stock awards vest on December $31$ of the following year. Grantees must remain employed with Bun$-$

ting Inc. to receive the common shares of stock without restrictions. The requisite service period is considered

to be $2$ years.

Each stock award represents one share of $$10$ par, common stock of Bunting Inc.

On the date of grant, the common shares were trading at $$40$ per share. During the current and following year,

the average price of common stock was $$45$ and $$50$ per share, respectively.

Required

a$.$ Prepare the journal entry on the date of grant, January $1.$

b$.$ Prepare the journal entry on December $31$ of the current year.

c$.$ Assume instead that the board of directors granted each of the $10$ employees $2,000$ restricted stock units in$-$

stead of restricted stock awards. Each restricted stock unit represents one share of common stock of Bunting

Inc. Prepare the journal entries on January $1$ and on December $31$ of the current year.

d$.(1)$ What is the net impact on stockholders' equity on December $31$ for restricted stock awards in part $a?$

$(2)$ What is the net impact on stockholders' equity on December $31$ for restricted stock units in part $c?$