TR15-5 Options (LO 15-5) Pont Chemical Remediation Ltd. issued options in 20X6 allowing the holder to acquire 50,000 common shares in five years' time at an acquisition price of $20 per share. Using an option pricing model, the options are valued at $120,000. The options were issued for consulting and promotion work done, tasks that are not easily valued. Required 1. Provide the journal entry to record the transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry for issue of shares towards Consulting/promotion expense. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 2. Assume that the options were exercised when the market price of common shares is $44. Provide the entry for exercise. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for exercising the options. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 3. Assume that the options were allowed to lapse when the price of common shares is $16. Provide the entry for the lapse. (If no entry is required for a t ournal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for lapse of options issued Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal