AA-T introduced a profit-sharing plan for sales staff members in the 2018 financial year. The plan read as follows: Management has decided to implement the following profit-sharing plan for all sales staff: 20% of gross sales earned above a predetermined target of R500 000 will be allocated equally among all qualifying sales staff members. To qualify, sales staff members must have been in the employment of the company for at least two years up to the end of the current financial year and remain in the employ of the company for a further year after the current financial year end. Any allocation made to an employee who fails to meet the terms of the profit sharing plan is forfeited and will not be reallocated amongst other qualifying sales staff. All bonuses which will accrue, will only become payable after the employee remained in employment for the specified period. The following information was provided by the accountant of AA-T: The company had a total of 40 employees at the beginning of 2018, 30% of whom are sales staff. At this date, 25% of the sales staff had been employed by the company for less than one year and the remaining 75% had been employed by the company for at least a full year. It is expected that three of the sales staff who had been employed by the company for more than 8 years will resign during 2019 and there were no actual resignations during 2018. Furthermore, one of the employees whose employment was terminated as detailed in the following paragraph, was a sales staff member who has been with the company for more than 10 years. The gross sales achieved during the financial year ended 31 December 2018 amounted to R1 850 000 During the 2018 financial year the service of two employees were terminated before the normal retirement date. The company drafted a detailed formal plan according to which an amount of R25 000 would be paid to each of the employees during March 2019. The plan details were announced before the 31 December 2018 to the affected employees. On 1 March 2019 the amount of termination benefit was paid to the employees. No journal entries were processed relating to the abovementioned employee benefits in any financial year, except for journals relating to any payments made.

Required: a) prepare the journal entries for the above transactions for the year ended 31 December 2019