Stiller Co$.$ has the following common shares on its balance sheet at December $31,2021,$ the company's year$-$end:

Common shares, no par, unlimited authorized, $148,000$ issued and outstanding

of $$70$ per share. On the option grant date, an option$-$pricing model assigned a value to the options equal to $$61,200.$ Stiller Co$.$ follows ASPE and has chosen to account for forfeitures as they occur.

in $2026$ and his options were forfeited.

With the exception of part $($a$),$ assume all transactions took place on December $31$ prior to the adjusting entry for compensation expense. If no entry is required, leave it blank.

a$)$ Record the journal entry for the granting of the options.

Marking:

The date should be January $1,$ but you have not entered this date. This will cost you $1$ mark.

You have entered $2$ accounts in this journal entry when only $0$ were required. This will cost you $2$ marks.

The following accounts should not have been included in this journal entry: Retained earnings, Dividends. Any amounts entered for these accounts will not be evaluated.

b$)$ Record the first year compensation expense.

Marking:

The date should be December $31,$ but you have not entered this date. This will cost you $1$ mark.

'Compensation expense' should be debited for the amount of $$10,200,$ but you have not done this. This will cost you $1$ mark.

You have not included the 'Contributed surplus $-$ stock options' account in this journal entry. This will cost you $2$ marks.

'Common shares' should not have been included in this journal entry. Any amounts entered for this account will not be evaluated.

$14,400$ options granted: years $=$$$10,200$

c$)$ Record the exercising of the options.

Marking:

You have not included the 'Contributed surplus $-$ stock options' account in this journal entry. This will cost you $2$ marks.

You have not included the 'Cash' account in this journal entry. This will cost you $2$ marks.

You have not included the 'Common shares' account in this journal entry. This will cost you $2$ marks.

The following accounts should not have been included in this journal entry: Compensation expense, Contributed surplus $-$ convertible bonds options. Any amounts entered for these accounts will not be evaluated.

d$)$ Record the forfeit of the options.

Marking:

You have not included the 'Contributed surplus $-$ stock options' account in this journal entry. This will cost you $2$ marks.

'Compensation expense' should be credited for the amount of $$13,600,$ but you have not done this. This will cost you $1$ mark.

'Contributed surplus $-$ convertible bonds options' should not have been included in this journal entry. Any amounts entered for this account will not be evaluated.

$1$ set of options $=$$$61,2003$ employees $=$$$20,400$

$$20,4004$ years $6$ years $=$$$13,600$

e$)$ Record the lapsing of the options.

Marking:

'Contributed surplus $-$ stock options' should be debited for the amount of $$20,400,$ but you have not done this. This will cost you $1$ mark.

You have not included the 'Contributed surplus $-$ expired options' account in this journal entry. This will cost you $2$ marks.

'Common shares' should not have been included in this journal entry. Any amounts entered for this account will not be evaluated.

$4,800$ options lapsed: employees $=$$$20,400$