Company has a policy to pay bonus of CU 10,000 to each of its 600 workers, after 2 months of closure of the financial year. Company has a year end of 30 June. On 1st june 20x0 management announced a scheme whereby each worker was given the option to purchase 1000 shares on payment of CU 8 per share in lieu of cash bonus for the year ended 30 june 20x0. Last date to exercise option is 31 july 20x0. 60% employees exercised the option on 30 June 20x0. On 31 july 20x0 20% more employees exercised the option. Shares were issued on 1 sep 20x0.
Market price of share:
30 june 20x0 CU 32
31 july 20x0 CU 34
1 sept 20x0 CU 40.
Please make the accounting entries on 30 june 20x0, 31 july 20x0 and 1 sep 20x0 for both bonus and option.
I will be very grateful for your support.