Oriole Limited established a share appreciation rights (SARS) program that entitled its new president, Angela Murfitt, t

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Oriole Limited Established A Share Appreciation Rights Sars Program That Entitled Its New President Angela Murfitt T 1 (23.14 KiB) Viewed 7 times

Oriole Limited established a share appreciation rights (SARS) program that entitled its new president, Angela Murfitt, to receive cash for the difference between the Oriole Limited common shares' fair value and a pre-established price of $27 (also fair value on December 31, 2019), on 51,800 SARs. The date of grant is December 31, 2019, and the required employment (service) period is four years. The common shares' fair value fluctuated as follows: December 31, 2020, $31; December 31, 2021, $35; December 31, 2022, $42; December 31, 2023, $31; and December 31, 2024, $45. Oriole Limited recognizes the SARs in its financial statements. Angela Murfitt exercised half of the SARS on June 1, 2025, when the share price was $44. Assume that Oriole follows ASPE.
Prepare a five-year (2020 to 2024) schedule of compensation expense pertaining to the 51,800 SARS granted to Murfitt. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2020 2021 2022 2023 2024 Fair Value $31 35 42 31 45 Pre-estab. Price $27 27 27 27 27 Difference $ Number of Rights Total Compensation $
umber of ights Total Compensation $ Accrual Entry $ Balance of Liability $
Prepare the journal entries for compensation expense in 2020, 2023, and 2024 pertaining to the 51,800 SARS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date December 31, 2020 December 31, 2023 December 31, 2024 Debit Credit
Prepare the entry at June 1, 2025, for the exercise of the SARS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation June 1, 2025 Debit Credit