Derrick Company issues 4,380 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2014. The stock has a fair value of $129,400 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company for 4 years. The par value of the stock is $4. At December 31, 2015, the fair value of the stock is $160,000.
(a) Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant), and December 31, 2015.