Problem 1: Stock Compensation Journal Entries On January 1, 2021, Lawson Brothers Enterprises (LBE) granted restricted stock units (RSUs) representing 30 thousand of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy thevesting requirement, the company will distribute the shares. The common shares had a marketprice of $10 per share on the grant date. At the date of grant, LBE anticipated that 5% of therecipients would leave the firm prior to vesting. During 2022 second year, LBE revised its estimate of forfeitures from 5% to 10% Ignore taxes.

Required (in Good Form) (Using the working papers provided):

1. Prepare the appropriate journal entry to record compensation expense on December 31,2021, 2022, and 2023. (Show computations as parenthetical under each entry)

.2. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

3. Prepare the partial 2023 income statement and balance sheet for LBS