CloudWorks, Inc. has an employee stock option plan (ESOP henceforth). In 2031, the firm's executive officers were granted 10,000 options with an exercise price of $40 and a vesting period of 3 years. The estimate of the fair value of the granted options is $6 per unit of options. The firm's common stock has a par value of $1, and its current market price is $38 per share. Answer questions a) and b) below. (Lecture notes, pp.14-17) a) Using the template below, provide relevant accounting entries that show the effect of the option granting on the balance sheet at the end of 2031. Clearly indicate the dollar amount and whether it is an increase or decrease, e.g., "cash: $6,000() ", "noncash asset: $12,000(+) ", "APIC: \$25,000 (+),RE:$15,000(), etc. b) Suppose that in 2035 , one of the executives exercises 200 options when the market price of the stock is $55, higher than the exercise price $40. What will be the effect of the option exercise on the balance sheet? Using the template below, provide relevant accounting entries indicating the dollar amounts and whether they are an increase or decrease, e.g., "cash: $6,000() ", "noncash asset: $12,000(+) ", "APIC: $25,000(+) ", RE: $15,000() ", etc. CloudWorks, Inc. has an employee stock option plan (ESOP henceforth). In 2031, the firm's executive officers were granted 10,000 options with an exercise price of $40 and a vesting period of 3 years. The estimate of the fair value of the granted options is $6 per unit of options. The firm's common stock has a par value of $1, and its current market price is $38 per share. Answer questions a) and b) below. (Lecture notes, pp.14-17) a) Using the template below, provide relevant accounting entries that show the effect of the option granting on the balance sheet at the end of 2031. Clearly indicate the dollar amount and whether it is an increase or decrease, e.g., "cash: $6,000() ", "noncash asset: $12,000(+) ", "APIC: \$25,000 (+),RE:$15,000(), etc. b) Suppose that in 2035 , one of the executives exercises 200 options when the market price of the stock is $55, higher than the exercise price $40. What will be the effect of the option exercise on the balance sheet? Using the template below, provide relevant accounting entries indicating the dollar amounts and whether they are an increase or decrease, e.g., "cash: $6,000() ", "noncash asset: $12,000(+) ", "APIC: $25,000(+) ", RE: $15,000() ", etc