Bramble Company adopted a stock-option plan on November 30, 2016, that provided that69,000shares of $5par value stock be designated as available for the granting of options to officers of the corporation at a price of $8a share. The market price was $11a share on November 30, 2017.

On January 2, 2017, options to purchase26,500shares were granted to president Tom Winter14,000for services to be rendered in 2017 and12,500for services to be rendered in 2018. Also on that date, options to purchase13,500shares were granted to vice president Michelle Bennett6,750for services to be rendered in 2017 and6,750for services to be rendered in 2018. The market price of the stock was $13a share on January 2, 2017. 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 $5per option.

In 2018, 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, 2018, when the options for 2017 services lapsed.

On December 31, 2019, both president Winter and vice president Bennett exercised their options for12,500and6,750shares, respectively, when the market price was $17a share.

Prepare the necessary journal entries in 2016 when the stock-option plan was adopted, in 2017 when options were granted, in 2018 when options lapsed, and in 2019 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, 2016Jan. 2, 2017Dec. 31, 2017Dec. 31, 2018Dec. 31, 2019EAT_1458281377612_1_2475701138306559

No Entry

0.00

No Entry

0.00

Nov. 30, 2016Jan. 2, 2017Dec. 31, 2017Dec. 31, 2018Dec. 31, 2019EAT_1458281377612_1_4483692684500196

No Entry

0.00

No Entry

0.00

(To record options granted to president.)

Nov. 30, 2016Jan. 2, 2017Dec. 31, 2017Dec. 31, 2018Dec. 31, 2019EAT_1458281377612_1_4483692684500196

Compensation Expense

96,250

Paid-in Capital-Stock Options

96,250

(To record compensation expense attributable to 2017.)

Nov. 30, 2016Jan. 2, 2017Dec. 31, 2017Dec. 31, 2018Dec. 31, 2019EAT_1458281377612_1_8707525997442085

Compensation Expense

101,250

Paid-in Capital-Stock Options

101,250

(To record compensation expense attributable to 2018.)

Nov. 30, 2016Jan. 2, 2017Dec. 31, 2017Dec. 31, 2018Dec. 31, 2019EAT_1458281377612_1_8707525997442085

Paid-in Capital-Stock Options

96,250

Paid-in Capital-Expired Stock Options

96,250

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

Dec. 31, 2019

Cash

162,000

Paid-in Capital-Stock Options

101,250

Common Stock

101,250

Paid-in Capital in Excess of Par - Common Stock

162,000