Mercury Limited issued long-term compensation contracts for its 10 -member executive team as follows:

1. Mercury issued a total of 40,000 SARs units at the beginning of \(20 \mathrm{X} 3\). These SARs units vest and are exercisable after three years. The value of a SARs unit, to be paid in cash, is calculated as the difference between the market value of common shares on the date the SARs were issued ( \(\$ 16\) ), and the market value on the date of exercise. All executives were paid their SARs entitlements at the end of 20X5.

2. Mercury issued 4,000 units in a phantom stock plan at the beginning of \(20 \mathrm{X} 3\). These units allow the executives to receive either 4,000 shares or the cash value of 3,200 shares, at their choice, after holding the units for three years. The share alternative was valued at \(\$ 14,000\) at inception for accounting purposes. The fair value of the liability was estimated to be \(\$ 56,000\) at the end of \(20 \times 3\), and \(\$ 75,000\) at the end of \(20 \mathrm{X} 4\). The employees elected to receive shares at maturity in \(20 \mathrm{X} 5\).

3. Mercury issued options at the beginning of \(20 \mathrm{X} 3\), allowing 20,000 shares to be issued for \(\$ 1\) per share after four years. At the end of \(20 \mathrm{X} 3\), each unit is estimated to be worth \(\$ 8\); and then \(\$ 9(20 X 4)\), \(\$ 13(20 X 5)\), and \(\$ 16\) (20X6). An option pricing model valued the options at a total of \(\$ 260,000\) in early \(20 X 3\).

Market values of common shares at the end of \(20 \mathrm{X} 3, \$ 19 ; 20 \mathrm{X} 4, \$ 24\); and \(20 \mathrm{X} 5, \$ 22\). The fair value of a SARs unit was estimated to be \(\$ 7\) at the end of \(20 \mathrm{X} 3\) and \(\$ 9\) at the end of \(20 \mathrm{X} 4\). Retention levels were expected to be \(90 \%\) at the end of \(20 \mathrm{X} 3\) and \(80 \%\) at the end of \(20 \mathrm{X} 4\).

Seven executives were still with the company at the end of \(20 \times 5\) and this \(70 \%\) retention rate was expected to be maintained through \(20 X 6\).

Required:
1. Provide the journal entries for \(20 \times 3,20 \times 4\), and 20X5.
2. What would appear on the SFP at the end of \(20 \mathrm{X} 4\) ?