Problem #1 Allied Paper Products, Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2016, the company granted 16 million of its $1 par common shares, subject to forfeitur

Problem #1Allied Paper Products, Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2016, the company granted 16 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $5 per share on the grant date.Required:1.Determine the total compensation cost pertaining to the restricted shares.2.Prepare the appropriate journal entries related to the restricted stock through December 31, 2017.Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan, the company on January 1, 2016, granted 4 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $22.50 per share on the grant date. Required:1.Determine the total compensation cost pertaining to the restricted shares. 2. & 3.Prepare the appropriate journal entries. Problem #3In order to encourage employee ownership of the company’s $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 15% discount. During March, employees purchased 50,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share.Required:Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan.