Answered: Rain INC. granted 5,000 share… | bartleby

Rain INC. granted 5,000 share appreciation rights (SARs) to employees for service on January 1, 2008. Employees earn a cash payment to the appreciation in the share price between January 1, 2008 and December 32, 2010. The share appreciation rights vest on December 31, 2010. Date Fair value of each SAR 1-Jan-08 10 31-Dec-08 12 31-Dec-09 21 31-Dec-10 18 No. od SARs expected to vest 4,500 4,500 1,750 4,850 Answer tha following questions: What is the journal entry on January 1, 2008? What is the journal entry on December 31, 2008? What is the journal entry on December 31, 2009?

Cornerstones of Financial Accounting

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 23E

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Rain INC. granted 5,000 share appreciation rights (SARs) to employees for service on January 1, 2008. Employees earn a cash payment to the appreciation in the share price between January 1, 2008 and December 32, 2010. The share appreciation rights vest on December 31, 2010.

Date Fair value of each SAR

1-Jan-08 10

31-Dec-08 12

31-Dec-09 21

31-Dec-10 18

No. od SARs expected to vest

4,500

4,500

1,750

4,850

Answer tha following questions:

What is the journal entry on January 1, 2008?
What is the journal entry on December 31, 2008?
What is the journal entry on December 31, 2009?
What is the journal entry on December 31, 2010?

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