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Please help! Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the fair value method. 1 ) On 1/1/17, the shareholders adopted a

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Prepare the necessary entries from 1/1/17-2/1/19 for the following events using the fair value method. 1 ) On 1/1/17, the shareholders adopted a share option plan for top executives whereby each might receive rights to purchase up to 12,000 ordinary shares at P40 per share. The par value is P10 per share. On 2/1/17, options were granted to each of five executives to purchase 12,000 shares. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options expire on 2/1/19. It is assumed that the options were for services performed equally in 2017 and 2016. The Black-Scholes option pricing model determines total compensation expense to be P1,300,000. 12/31/17 Compensation Expense Share Premium--Share Options 12/31/18 Compensation Expense Share Premium--Share Options 2 ) At 2/1/19, four executives exercised their options. The fifth executive chose not to exercise his options, which therefore were forfeited. 2//19 Cash Share Premium-Share Option v Share Capital--Ordinary Share Premium--Ordinary Share Premium-Share Option Share Premium--Expired Share Options

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