Huaqiang Huang Inc. establishes a SARs program on January 1st, 2021, which entitles executives to receive cash at the date of exercise (any time after the service period) for the difference between the shares fair value and the pre-established or stated price of $5.00 on 50,000 SARs. The SARs fair value on December 31, 2021 is $ 300,000, $0 on December 31st, 2022, and $ 400,000 at December 31st, 2023 and $ 500,000 at December 31st, 2024 and the service period runs for four years (2021 to 2024). 12,500 of the options are exercised on December 31st, 2024.

Required:

1. Prepare the required adjusting entry as at December 31, 2021.
2. Prepare the required adjusting entry at December 31, 2022.
3. Prepare the required adjusting entry at December 31, 2023.
4. Prepare the required adjusting entry at December 31, 2024.
5. Prepare the entry when the executives exercise their rights.