Question
Need help understanding the prompt. I simply require a firmer understanding of the question to feel confident. Especially on the formulas. On January 1, 2017,
Need help understanding the prompt. I simply require a firmer understanding of the question to feel confident. Especially on the formulas.
On January 1, 2017, Orr Co. established a stock appreciation rights plan for its executives. They could receive cash at any time during the next four years equal to the difference between the market price of the common stock and a preestablished price of $17 on 400,000 SARs. The market price is as follows: 12/31/17$22; 12/31/18$18; 12/31/19$20; 12/31/20$21. On December 31, 2019, 70,000 SARs are exercised, and the remaining SARs are exercised on December 31, 2020.
schedule that shows the amount of compensation expense for each of the four years starting with 2017.
Schedule of Compensation ExpenseDate
Market Set Price Value of SARS Percent Accrued Accrued to Date Expense
Price
12/31/17 $ $ $ $ $ $
$
12/31/18 $ $ $ $ $ $
12/31/19 $ $ $ $ $ $
12/31/20 $ $ $ $ $ $
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the journal entry at 12/31/18 to record compensation expense.
Date Account Titles and Explanation Debit Credit
12/31/18
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the journal entry at 12/31/20 to record the remaining SARs.
Date Account Titles and Explanation Debit Credit
12/31/20
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