Question: Hi can you help me solve this problem it is all about share compensation and it needs journal entries... thank you E. On January 2,

Hi can you help me solve this problem it is all about share compensation and it needs journal entries... thank you

E. On January 2, 2018, the shareholders of Pau Company approved a plan that grants the company's four executives options to purchase 2,000 shares each of the company's P50 par value ordinary shares. Theoptionsare granted on January 2, 2018 and may be exercised any timefromJanuary 1, 2020 to December 31, 2022.

The options price per share is P60 and the market price of each ordinary share was P90 on January 2, 2018;P96 on December 31, 2018 and P100on December 31, 2019.

Required:

a. Entriesduring 2018 and 2019 assuming no executiveleft the company during the vesting period.

b. Assuming that the options were exercised on June 30 2020 when the market price of an ordinary share is P105, entries to record the said transaction.

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