Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2025. The stock has a fair value of $500,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2029. The par value of the stock is $10. At December 31, 2025, the fair value of the stock is $450,000. Instructions Prepare the journal entries.

Prepare the journal entries on January 1, 2025, and December 31, 2026, assuming that Tweedie issued 10,000 shares of restricted stock units instead of 4,000 shares of restricted stock.

On July 5, 2029, Tokar leaves the company. Prepare the journal entry (if any) to account for this forfeiture of restricted stock units.