Top Rock Corporation has an executive stock option plan which grants the Chief Executive

Officer (CEO) the ability to purchase common shares following the conclusion of a vesting

period. The CEO exercised some of the stock options she received on November 14, 2024. The

CEO allowed the remainder of the options to lapse. Details regarding the stock option plan

follow:

Number of shares that can be purchased by the CEO                                                 35360

Option price per share                                                           $ 18.00

Market price per share on January 1, 2021                      $ 18.00

Market price per share on November 14, 2024                $ 23.40

Number of stock options exercised by CEO on November 14, 2024                        22984

 

The vesting period for the stock option plan is January 1, 2021 to December 31, 2022.

The exercise period for the stock option plan is January 1, 2023 to December 31, 2025.

Top  Rock Corporation determines, using an opinion=pricing model, that each  $4

option has the following fair value on January 1, 2021

Top Rock has a year end of December 31. Assume that Top Rock transfers the proceeds of any expired options to a separate equity account.

 

Prepare journal entries for Top Rock Corporation to account for the stock option plan on each of

the following dates:

January 1, 2021

December 31, 2021

December 31, 2022

November 14, 2024

December 31, 2025