Refer to the data for Barwood Ltd. in BE16.6. Repeat the requirements, assuming that instead of options, Barwood granted 2,000 restricted shares.
On January 1, 2019, Barwood Ltd. granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood's £5 par value ordinary shares at £50 per share at any time during the next 5 years. The market price of the shares is £65 per share on the date of grant. The fair value of the options at the grant date is £150,000. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2019, and December 31, 2019 and 2020.