On January 1, 2012, Ellison Company granted Sam Wine, an employee, an option to buy 800 shares (par value of $1 per share) of Ellison Co. stock for $20 per share, the option is exercisable for 5 years from the date of grant. Using a fair value option pricing model, the total compensation expense is determined to be $3,400. Wine exercised his option on October 1, 2015. The market price on that date was $25.

The service period is for three years beginning January 1, 2012. As a result of the option granted to Wine, using the fair value method, provide the following journal entries:

Journal entry at grant date (1/1/2012)

Journal entry (12/31/12)

Journal entry at (10/1/15)