please explain each step

On January 1,2023, Sheridan Corporation granted 3,500 options to executives. Each option entitles the holder to purchase one share of Sheridan's common shares at $36 per share at any time after January 1,2025. The shares' market price is $50 per share on the date of grant, and the required service period is two years. Prepare Sheridan's journal entries for January 1, 2023, and December 31, 2023 and 2024. Assume that the options' fair value as calculated using an options pricing model is $102,000. Ignore forfeitures for simplification purposes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)