Journal entries for employee stock options. Morrissey Corporation grants 50,000 stock options to its managerial employees on December 31, 2008, to purchase 50,000 shares of its $1 par value common stock for $60 per share. The market price of a share of common stock on this date is $50 per share. Employees must wait two years before the options vest and they can exercise the options and this two-year period is the expected period of benefit from the stock options. An option-pricing model indicates that the value of these options on the grant date is $400,000. On June 30, 2011, holders of 30,000 options exercise their options at a time when the market price of the stock is $65 per share. On November 15, 2011, holders of the remaining options exercise them at a time when the market price of the stock is $72 per share. Present journal entries to record the effects of the transactions related to stock options during 2008, 2009, 2010, and 2011. The firm reports on a calendar-year basis. Ignore income tax effects.