On January 1, 2020, Sheridan Corporation granted 4,500 options to executives. Each option entitles the holder to purchase one share of Sheridans $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $62 per share on the date of grant. The fair value of the options at the grant date is $157,000. The period of benefit is 2 years. Prepare Sheridans journal entries for January 1, 2020, and December 31, 2020 and 2021

Date Debit Credit Account Titles and Explanation No Entry 1/1/20 0 No Entry 0 12/31/20 Compensation Expense Paid-in Capital-Stock Options 12/31/21 Compensation Expense Paid-in Capital-Stock Options