On January 1, 2016,WindsorCorporation granted10,300options to key executives. Each option allows the executive to purchase one share ofWindsor's$5par value common stock at a price of $21per 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,Windsor'sstock was trading at $26per share, and a fair value option-pricing model determines total compensation to be $403,000.

On May 1, 2018,8,240options were exercised when the market price ofWindsor'sstock was $31per 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.