Question: Hi can you help me solve this problem? It is all about share appreciation rights and it needs journal entries... Thank you B. Pau Company

Hi can you help me solve this problem? It is all about share appreciation rights and it needs journal entries... Thank you

B. Pau Company issued share appreciation rights to its Chief executive Officer on January 1, 2018. The share appreciation rights may be exercised beginning January 1,2021 provided that the officer is still in the employ of the company at the date of exercise. Each right provides for a cash payment equal to the amount the share price of Pau Company exceeds P50. The equivalent number of shares for share appreciation rights will be based on the level of sales of the company during the year 2020, as follows:

Level of SalesEquivalent Shares Granted

P250 million - P400 million10,000

Above P400 million - P750 million15,000

Above P750 million20,000

The level of sales actually achievedby the enterprise and the share price at the end of each year are:

YearLevel of SalesShare price, end of year

2018P350 millionP74

2019P410 millionP85

2020P760 millionP95

Required:

Entries to record transactions at the end of each year (2018, 2019, 2020 and 2021).

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