On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Information on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Estimated Fair value per SAR number of SARS vesting Number of Year end SARS exercised $ 8 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 90% 15 93% 22 92% (actual) $18 2,100 14 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusive. (
On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) to its employees. When exercised, each SAR paid out the current market price of the common shares less $34 (the market price of the common shares on the date of the SAR grant). The vesting period ended on December 30, 2018, and the exercise period ended on December 31, 2019. Information on Wesley Inc.'s plan is as follows: Average cash paid out on exercise Estimated Fair value per SAR number of SARS vesting Number of Year end SARS exercised $ 8 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 90% 15 93% 22 92% (actual) $18 2,100 14 1,580 Required: Prepare all journal entries for the years ended December 31, 2017, through December 31, 2019, inclusive. (
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 5MC
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