Current Attempt in Progress Sweet Company adopted a stock option plan on November 30, 2019, that provided that 71,000 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $10 a share the market price was $11 a share on November 30, 2020. On January 2, 2020, options to purchase 30,300 shares were granted to president Tom Winter-14.200 for services to be rendered in 2020 and 16,100 for services to be rendered in 2021. Also on that date options to purchase 17.000 shares were granted to vice president Michelle Bennett-8,500 for services to be rendered in 2020 and 8.500 for services to be rendered in 2021. The market price of the stock was $15 a 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 $5 per 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 $9 a 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 for 16,100 and 8,500 shares respectively, when the market price was $14 a 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. I no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credi Any when the stock option plan was adopted, in 2020when 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 for the amounts.) Date Account Titles and Explanation Debit Credi v w (To record options granted to president.) To record compensation expense attributable to 2020.) To record compensation expense attributable to 2020.) (To record compensation expense attributable to 2021.) (To record lapse of president's and vice president's options.) (o record compensation expense atribe to 2021 (To record lapse of president's and vice president's options.) (To record issuance of shares)
