On January 1, 2020, Emerald Company granted to each of its four executives the right to...

Transcribed Image Text:

On January 1, 2020, Emerald Company granted to each of its four executives the right to choose either 1,000 ordinary shares or to receive cash payment equal to 900 shares. The grant conditional upon the completion of three years of service. The entity estimates that the value of the share alternative on January 1, 2020 is P150 per share. Emerald's ordinary share capital has par value of P100. The following table shows the fair value of Emerald's ordinary share: January 1, 2020 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 P158 160 165. 168 172 One executive exercised his right to receive the cash alternative on December 31, 2022; the others chose to receive the ordinary shares on December 31, 2023. REQUIRED: Prepare all entries relating to the above during the years 2020 through 2023. On January 1, 2020, Emerald Company granted to each of its four executives the right to choose either 1,000 ordinary shares or to receive cash payment equal to 900 shares. The grant conditional upon the completion of three years of service. The entity estimates that the value of the share alternative on January 1, 2020 is P150 per share. Emerald's ordinary share capital has par value of P100. The following table shows the fair value of Emerald's ordinary share: January 1, 2020 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 P158 160 165. 168 172 One executive exercised his right to receive the cash alternative on December 31, 2022; the others chose to receive the ordinary shares on December 31, 2023. REQUIRED: Prepare all entries relating to the above during the years 2020 through 2023.

Answer rating: 100% (QA)

To prepare the journal entries for the years 2020 through 2023 we need to consider the events and tr... View the full answer