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Sunland Corp., a public company, adopted a stock option plan on November 3 0 , 2 0 2 3 , that designated 7 0 ,

Sunland Corp., a public company, adopted a stock option plan on November 30,2023, that designated 70,000
common shares as available for the granting of options to officers of the corporation at an exercise price of $7 a
share. The market value was $11 a share on November 30,2023.
On January 2,2024, options to purchase 30,000 shares were granted to the president, Don Pedro: 17,500 for
services to be rendered in 2024, and 12,500 for services to be rendered in 2025. Also on that date, options to
purchase 16,000 shares were granted to the vice-president, Beatrice Leonato: 8,000 for services to be
rendered in 2024, and 8,000 for services to be rendered in 2025. The shares' market value was $13 a share on
January 2,2024. The options were exercisable for a period of one year following the year in which the services
were rendered. On January 2,2024, the value of the options was estimated at $400,000.
In 2025, neither the president nor the vice-president exercised their options because the shares' market price
was below the exercise price. The shares' market value was $6 a share on December 31,2025, when the options
for 2024 services lapsed.
On December 31,2026, both the president and vice-president exercised their options for 12,500 and 8,000
shares, respectively, when the market price was $15 a share. The company's year end is December 31.
Prepare the necessary journal entries in 2023 when the stock option plan was adopted, in 2024 when the
options were granted, in 2025 when the options lapsed, and in 2026 when the options were exercised. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in
the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. Do not round intermediate calculations. Round answers to 0 decimal places, e.g.5,275. List all debit entries
before credit entries.)
Please, prepare the journal entries with the right dates, account titles and show workings

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