BergCompany adopted a stock-option plan on November 30, 2019, that provided that70,000shares of $5par value stock be designated as available for the granting of options to officers of the corporation at a price of $9a share. The market price was $12a share on November 30, 2020.

On January 2, 2020, options to purchase28,000shares were granted to president Tom Winter15,000for services to be rendered in 2020 and13,000for services to be rendered in 2021. Also on that date, options to purchase14,000shares were granted to vice president Michelle Bennett7,000for services to be rendered in 2020 and7,000for services to be rendered in 2021. The market price of the stock was $14a share on January 2, 2020. 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 $4per option.

In 2021, neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market price of the stock was $8a share on December 31, 2021, when the options for 2020 services lapsed.

On December 31, 2022, both president Winter and vice president Bennett exercised their options for13,000and7,000shares, respectively, when the market price was $16a share.

Prepare the necessary journal entries in 2019 when the stock-option plan was adopted, in 2020 when options were granted, in 2021 when options lapsed, and in 2022 when options were exercised.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Nov. 30, 2019

Jan. 2, 2020

Dec. 31, 2020

Dec. 31, 2021

Dec. 31, 2022

Nov. 30, 2019

Jan. 2, 2020

Dec. 31, 2020

Dec. 31, 2021

Dec. 31, 2022

(To record options granted to president.)

Nov. 30, 2019

Jan. 2, 2020

Dec. 31, 2020

Dec. 31, 2021

Dec. 31, 2022

(To record compensation expense attributable to 2020.)

Nov. 30, 2019

Jan. 2, 2020

Dec. 31, 2020

Dec. 31, 2021

Dec. 31, 2022

(To record compensation expense attributable to 2021.)

Nov. 30, 2019

Jan. 2, 2020

Dec. 31, 2020

Dec. 31, 2021

Dec. 31, 2022

(To record lapse of president's and vice president's options.)

Nov. 30, 2019

Jan. 2, 2020

Dec. 31, 2020

Dec. 31, 2021

Dec. 31, 2022

(To record issuance of shares.)