3 Question 3 The Gordon Company issued 30,000 share appreciation rights to their employees on January 2, 20x1. The vesting period ends on June 30, 30x3 and the exercise period ends on December 31, 20x4. Data with regards to the plan is as follows: Average Cash paid per SAR when exercised Date Fair value per SAR Management's estimate of SARS vesting 90% 88% 85% (actual) $3.25 4.36 Dec 31, 20x1 Dec 31, 20x2 June 30, 20x3 Dec 31, 20x3 Dec 31, 20x4 3.30 3.85 1.96 A total of 16,000 SARS were exercised in 20x3 and the remainder were exercised in 20x4. Required Prepare the journal entries for the life of the SARS. 3 Question 3 The Gordon Company issued 30,000 share appreciation rights to their employees on January 2, 20x1. The vesting period ends on June 30, 30x3 and the exercise period ends on December 31, 20x4. Data with regards to the plan is as follows: Average Cash paid per SAR when exercised Date Fair value per SAR Management's estimate of SARS vesting 90% 88% 85% (actual) $3.25 4.36 Dec 31, 20x1 Dec 31, 20x2 June 30, 20x3 Dec 31, 20x3 Dec 31, 20x4 3.30 3.85 1.96 A total of 16,000 SARS were exercised in 20x3 and the remainder were exercised in 20x4. Required Prepare the journal entries for the life of the SARS