On January 1, 2016, Cheyenne Corporation granted 10,500 options to key executives. Each option allows the executive to purchase one share of Cheyenne's $5 par value common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1, 2018, if the grantee is still employed by the company at the time of the exercise. On the grant date, Cheyenne's stock was trading at $24 per share, and a fair value option-pricing model determines total compensation to be $394,000. On May 1, 2018, 8,400 options were exercised when the market price of Cheyenne's stock was $29 per share. The remaining options lapsed in 2020 because executives decided not to exercise their options. Prepare the necessary journal entries related to the stock option plan for the years 2016 through 2020. (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.)