journal entry for event:

Common Stock, $10 Par Value	$400,000
Paid-In Capital in Excess of Par: Common	600,000
Paid-In Capital, Treasury Stock	5,000
Paid-In Capital, Stock Options	200,000
Retained Earnings	1,200,000
Treasury Stock (5,000 shares)	(100,000)
Total Stockholders Equity	$2,305,000

December 31: Recorded 2020 compensation expense related to the stock options