On January $1,2021,$ Larkspur Inc. granted stock options to officers and key employees for the purchase of $20,000$ shares of the

company's $$10$ par common stock at $$27$ per share. The options were exercisable within a $5-$year period beginning January $1,2023,$ by

grantees still in the employ of the company, and expiring December $31,2027.$ The service period for this award is $2$ years. Assume that

the fair value option$-$pricing model determines total compensation expense to be $$323,200.$

On April $1,2022,2,000$ options were terminated when the employees resigned from the company. The market price of the common

stock was $$33$ per share on this date.

On March $31,2023,12,000$ options were exercised when the market price of the common stock was $$41$ per share.

Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and

charges to compensation expense, for the years ended December $31,2021,2022,$ and $2023.($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 O for the

amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

Jan. $1,2021$

Dec. $31,2021$

April $1,2022$

Dec. $31,2022$

Mar. $31,2023$

Here are the labels for the problem:

Bond Conversion Expanse

Bonds Payable

Cash

Compensation Expanse

Cammon Stock

Convertible Preferred Stock

Debt Conversion Expanse

Discount on Bonds Payable

Gain on Repurchase

Income Summary

Incremental Cash

Insurance Expanse

Interest Expanse

Interest Payable

Interest Receivable

Liability under Stock Appreciation Plan

No Entry

Paid$-$in Capital in Excess of Par $-$ Common Stock

Paid$-$in Capital in Excess of Par $-$ Preferred Stock

Paid$-$in Capital$-$Expired Stock Options

Paid$-$in Capital$-$Stock Options

Paid$-$in Capital$-$Stock Warrants

Premium on Bonds Payable

Preferred Stock

Retained Earnings

Share Capital$-$Ordinary

Share Premium$-$Conversion Equity

Share Premium$-$Share Options

Share Premium$-$Ordinary

Unamortized Bond Issue Costs

Unearned Compensation