Recording Stock Options: Issuance and Forfeiture

Stacy Corporation offered a stock option incentive plan to six of its top executives. During the second year from the date of the grant, but prior to the permissible exercise date, one of the six executives resigned and accepted employment with a competitor. In accordance with the provisions of the incentive plan, the stock option award for the resigned executive lapsed. At the date of lapse, the relevant account balance for all six executives combined was Paid-in CapitalStock Options, $675,000 (adjusted carrying amount). The requisite service period extends for three more years. The company's policy is to record forfeitures as incurred.

Required

Provide the journal entry directly related to the forfeited options.

Input Options:

Account Name	Dr.	Cr.
Answer	Answer	Answer
Answer	Answer	Answer

Cash Liability-Employee Stock Purchase Plan Preferred Stock Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Restricted Stock Paid-in CapitalStock Options Paid-in Capital-Expired Stock Options Unearned CompensationEquity Compensation Expense N/A