On January $1,$ Year $1,$ a company granted restricted stock units $($RSUs$)$ representing $25$ million of Its $$1$ par common shares to

executives, subject to forfelture if employment is terminated within three years. After the reciplents of the RSUs satisfy the vesting

requlrement, the company will distribute the shares.

The common shares had a market price of $$12$ per share on the grant date.

At the date of grant, the company anticipated that $5\%$ of the reciplents would leave the firm prior to vesting.

On January $1,$ Year $2,4\%$ of the RSUs are forfelted due to executive turnover.

The company chooses the option to account for forfeltures when they actually occur.

Required:

to $3.$ Prepare the approprlate journal entrles to record compensation expense on December $31,$ Year $1,$ December $31,$ Year $2,$ and

December $31,$ Year $3.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" In the first account fleld. Do not round

Intermedlate calculations. Enter your answers In millions $($l$.$e$.,10,000,000$ should be entered as $10).$

Journal entry worksheet

Record the entry for compensation expense on December $31,$ Year $1.$

Note: Enter debits before credits.