On January 1, 2013, Nichols Corporation granted 15,000 options to key executives. Each option allows the executive to purchase one share of Nichols $7 par value common stock at a price of $23 per share. The options were exercisable within a 2-year period beginning January 1, 2015, if the grantee is still employed by the company at the time of the exercise. On the grant date, Nichols stock was trading at $26 per share, and a fair value option-pricing model determines total compensation to be $466,200. On May 1, 2015, 12,000 options were exercised when the market price of Nichols stock was $32 per share. The remaining options lapsed in 2017 because executives decided not to exercise their options. Prepare the necessary journal entries related to the stock-option plan for the years 2013 through 2017.

Date Account Titles and Explanation Debit Credit 12/31/13 12/31/14