Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An employee receives 20,000 SARs based on current market price of $20 per share. Service period is 2 years. At end of 2 years, employee
An employee receives 20,000 SARs based on current market price of $20 per share. Service period is 2 years. At end of 2 years, employee receives cash equal to stock price increase. 12/31/yr 1 stock price is $24. 12/31/yr 2 stock price is $28.
a. What is the journal entry at grant date?
b. What is the journal entry at the end of year one?
c. What are the two journal entries at the end of year two?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started