April Adams, Jack Jenson, and Mary Martin are executives who work for Larson Industries. On July 1, 2018, Larson granted each executive 3,000 restricted stock units. On the grant date, the fair value of Larson’s common stock was $35 per share. According to the agreement between the company and the executives, Ms. Adams, Mr. Jensen, and Ms. Martin have to work for Larson for 3 years before the units can be converted into Larson’s $3 par value common on June 30, 2021. All three executives worked for Larson during 2018 and 2019. However, a family matter forced Jack Jensen to resign, effective on June 30, 2020. April Adams and Mary Martin both completed the vesting period. On the vesting date, June 30, 2021, the market value of Larson’s common stock was $45 per share. The combined federal and state income tax rate is 40%. 1. Make the journal entry to record compensation expense for 2018? 2. What is the balance in paid in capital-restricted stock units at December 31, 2019? 3. What is compensation expense for 2020? 4. What is the balance in paid in capital-restricted stock units on June 30, 2021? 5. Make the journal entry to record Larson’s net share settlement with April Adams and Mary Martin on June 30, 2021. Model the entry after the one that I covered on my net share settlement handout.