Norway Company granted 200 shares appreciation rights to each of the 500 employees on January 1, 2020. The rights are due to vest on December 31, 2023 with payment being made on December 31, 2023 and expire on December 31,2024. Only 80% of the awards vested.                                                                                                 Share Price January 1, 2020 ( Predetermined price)                               150 December 31, 2020, 2021, and  2022                                   180 December 31, 2023                                                                  210 December 31, 2024                                                                  190 The share appreciation rights were exercised on December 31, 2024. Required: Prepare journal entries from 2020 to 2024 in connection with the share appreciation rights.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...
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Norway Company granted 200 shares appreciation rights to each of the 500 employees on January 1, 2020.

The rights are due to vest on December 31, 2023 with payment being made on December 31, 2023 and expire on December 31,2024. Only 80% of the awards vested.

                                                                                                Share Price

January 1, 2020 ( Predetermined price)                               150

December 31, 2020, 2021, and  2022                                   180

December 31, 2023                                                                  210

December 31, 2024                                                                  190

The share appreciation rights were exercised on December 31, 2024.

Required:

Prepare journal entries from 2020 to 2024 in connection with the share appreciation rights.

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