Refer to the information in Brief Exercise 21-25. The options were granted as described, but instead the executive left the company on January 1, 2022. Prepare the journal entry required on January 1, 2022, assuming that the company's policy is to record forfeitures as incurred.

Exercise 21-25

On January 1, 2020, Holiday Inc. offered a stock option incentive plan to a top executive. The plan provided the executive 300 stock options for Holiday Inc. \(\$ 1\) par value, common stock at an option price of \(\$ 15\) per share through the expiration date of January 1, 2026. The fair value of the options based upon an option-pricing model on January 1,2020 , is \(\$ 9,000\). The market price at year-end of Holiday Inc. stock is \(\$ 15\) per share on January 1,2020 , and \(\$ 18\) on December 31, 2020. The requisite service period is 3 years. The options were exercised on March 1, 2023, when the market price of the stock was \(\$ 20\) per share.

a. Prepare the journal entry (if any) required on January \(1,2020\).

b. . Prepare the adjusting journal entry required on December 31,2020 , the company's year-end.

c. Prepare the journal entry required on March 1, 2023.