What is/are the journal entry(ies)to recognise salary expense for Southport Ltd.related to the share appreciation rights issued 1 July 2009 for the year ended 30 June 2013?

Question

Quizplus · Accepted Answer

The correct journal entry to recognize the salary expense for share appreciation rights is a debit to salary expense and a credit to liability for share appreciation rights. As per the information provided, the share appreciation rights were issued on 1 July 2009, so the expense should be recognized for the year ended 30 June 2013. Therefore, the correct journal entry to recognize the expense would be:
Debit Salary Expense
Credit Liability for Share Appreciation Rights

What Is/are the Journal Entry(ies)to Recognise Salary Expense for Southport