Sage Company adopted a stock-option plan on November 30, 2019, that provided that 69,000 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $8 a share. The market price was $11 a share on November 30, 2020. On January 2, 2020, options to purchase 25,300 shares were granted to president Tom Winter14,200 for services to be rendered in 2020 and 11,100 for services to be rendered in 2021. Also on that date, options to purchase 12,200 shares were granted to vice president Michelle Bennett6,100 for services to be rendered in 2020 and 6,100 for services to be rendered in 2021. The market price of the stock was $14 a share on January 2, 2020. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option. In 2021, neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market price of the stock was $8 a share on December 31, 2021, when the options for 2020 services lapsed. On December 31, 2022, both president Winter and vice president Bennett exercised their options for 11,100 and 6,100 shares, respectively, when the market price was $17 a share. Prepare the necessary journal entries in 2019 when the stock-option plan was adopted, in 2020 when options were granted, in 2021 when options lapsed, and in 2022 when options were exercised. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Nov. 30, 2019Jan. 2, 2020Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022
Nov. 30, 2019Jan. 2, 2020Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022
	(To record options granted to president.)
Nov. 30, 2019Jan. 2, 2020Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022
	(To record compensation expense attributable to 2020.)
Nov. 30, 2019Jan. 2, 2020Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022
	(To record compensation expense attributable to 2021.)
Nov. 30, 2019Jan. 2, 2020Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022
	(To record lapse of presidents and vice presidents options.)
Nov. 30, 2019Jan. 2, 2020Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022
	(To record issuance of shares.)

List of Accounts

Assistance Used

• Bond Conversion Expense
• Bonds Payable
• Cash
• Compensation Expense
• Common Stock
• Convertible Preferred Stock
• Debt Conversion Expense
• Discount on Bonds Payable
• Gain on Repurchase
• Income Summary
• Incremental Cash
• Insurance Expense
• Interest Expense
• Interest Payable
• Interest Receivable
• Liability under Stock Appreciation Plan
• No Entry
• Paid-in Capital in Excess of Par - Common Stock
• Paid-in Capital in Excess of Par - Preferred Stock
• Paid-in Capital-Expired Stock Options
• Paid-in Capital-Stock Options
• Paid-in Capital-Stock Warrants
• Premium on Bonds Payable
• Preferred Stock
• Retained Earnings
• Share Capital-Ordinary
• Share Premium-Conversion Equity
• Share Premium-Share Options
• Share Premium-Ordinary
• Unamortized Bond Issue Costs
• Unearned Compensation