Exercise 16-10

On November 1, 2014, Olympic Company adopted a stock-option plan that granted options to key executives to purchase30,000shares of the companys $10par value common stock. The options were granted on January 2, 2015, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $450,000.

All of the options were exercised during the year 2017:20,000on January 3 when the market price was $67, and10,000on May 1 when the market price was $77a share.

Prepare journal entries relating to the stock-option plan for the years 2015, 2016, and 2017. Assume that the employee performs services equally in 2015 and 2016.(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
1/2/15
12/31/15
12/31/16
1/3/17
5/1/17

SHOW LIST OF ACCOUNTS

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