Berg Company adopted a share-option plan on November 30, 2014, that provided that 70,000 shares of \($5\) par value ordinary shares be designated as available for the granting of options to officers of the corporation at a price of \($9\) a share. The market price was \($12\) a share on November 30, 2014.

On January 2, 2015, options to purchase 28,000 shares were granted to president Tom Winter—15,000 for services to be rendered in 2015 and 13,000 for services to be rendered in 2016. Also on that date, options to purchase 14,000 shares were granted to vice president Michelle Bennett—7,000 for services to be rendered in 2015 and 7,000 for services to be rendered in 2016. The market price of the shares was \($14\) a share on January 2, 2015. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was \($4\) per option.
In 2016, neither the president nor the vice president exercised their options because the market price of the shares was below the exercise price. The market price was \($8\) a share on December 31, 2016, when the options for 2015 services lapsed.
On December 31, 2017, both Winter and Bennett exercised their options for 13,000 and 7,000 shares, respectively, when the market price was \($16\) a share.
Instructions Prepare the necessary journal entries in 2014 when the share-option plan was adopted, in 2015 when options were granted, in 2016 when options lapsed, and in 2017 when options were exercised.