What would be the appropriate journal entry to account for the share-based payment transaction for the year ending 30 June 2010?
E) None of the given answers.

Question

Quizplus · Accepted Answer

Share-based payment is a type of equity transaction where the company issues shares to employees or third parties as a form of compensation. The appropriate journal entry for the year ending 30 June 2010 would be to debit the share-based payment expense account and credit the share capital or share premium account, depending on the terms of the transaction. Choice B is the only option that shows a debit to share-based payment expense and a credit to share capital, which is the most likely scenario.

What Would Be the Appropriate Journal Entry to Account for the Share-Based