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On January 1, 2018, Smith Corp. granted its executives options to purchase 2,000 shares of Smith's stock at exercise price of $32 per share. The

On January 1, 2018, Smith Corp. granted its executives options to purchase 2,000 shares of Smith's stock at exercise price of $32 per share. The Black-Scholes option-pricing model determines total compensation to be $26,000. The option became exercisable 5 years after grant date (unless employment is terminated) and prior to 15 years from grant date. 1,700 of the options were exercised on 7/10/28. The entries on 7/10/28 include a

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credit of $22,100 to paid-in capital - stock options

debit of $22,100 to paid-in capital - stock options

debit of $26,000 to paid-in capital - stock options

credit of $26,000 to paid-in capital - stock options

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