Item $1-$ When the financial controller was providing details on the employee share schemes at Knappa, it was identified that share options granted to the production staff on $1$ July $2022$ were not accounted for in the year ended $30$ June $2023$ financial statements. On $1$ July $2022,1,000$ share options were granted to each of Knappa$$s $30$ production employees, on the condition that the employees remain with the company for the next two years and that the share price increases from $$26\mathrm{.}50$ per share on $1$ July $2022$ to $$35$ per share on $30$ June $2024.$ If the share price target at $30$ June $2024$ is achieved, the share options can be exercised at any time over the subsequent $12$ months $($ie up to $30$ June $2025).$ The fair value of each share option at the grant date was $$5\mathrm{.}60.$ You have obtained the following information:

In Year $30\mathrm{.}06\mathrm{.}2023$

$-$Number of employees who departed during the year: $1$

$-$Number of employees expected to depart in future years :$2$

$-$Knappa share price per share$($$$)$: $28\mathrm{.}35$

In Year $30\mathrm{.}06\mathrm{.}2024$

$-$Number of employees who departed during the year: $4$

$-$Number of employees expected to depart in future years : N$/$A

$-$Knappa share price per share$($$$)$: $32\mathrm{.}15$

$1.$ This information was obtained at $30$ June $2023$; however, the appropriate accounting was not recognised. The impact of the employee share scheme is considered material to the financial statements.

Item $2-$ On $30$ June $2024,$ Knappa entered into a five$-$year lease arrangement for a shop. The lessor gave permission for Knappa to install a wood$-$fired pizza oven on$-$site on the condition that it is removed and the shop is restored at the end of the lease arrangement on $30$ June $2029.$ To encourage Knappa to agree to the lease arrangement, the lessor offered a one$-$off cash payment of $$20,000,$ which was paid on $30$ June $2024.$

Additional information

$$ Five annual lease payments of $$240,000,$ payable on $30$ June each year. The first payment will be due on $30$ June $2025.$

$$ The wood$-$fired pizza oven was installed on $30$ June $2024.$

$$ The estimated costs to remove the wood$-$fired pizza oven and restore the shop is $$25,000$ on $30$ June $2029.$ The discounted amount of these estimated costs is correctly calculated at $$19,588$ at $30$ June $2024.$

$$ The interest rate implicit in the lease is $8\%.$

Required $($a$)$ For the year ended $30$ June $2024,$ prepare the journal entries to account for items $1$ and $2.$ Show all workings. Ignore the impact of tax.