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Question - On 1 January 2015, Muri Ltd appointed Sheron as the Chief Executive Officer.
On 1 July 2015, Muri Ltd issued Sheron 50,000 options valued at $1 each. The options gave her the right to buy shares for $9 anytime between 1 July 2017 and 30 June 2018. The share price was $5 on 1 July 2015 and $10 on 31 December 2017 when Sheron exercised the options.
Required - Prepare relevant journal entries on 31 December 2017.
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