Answer:
Explanation:
Date	General Journal	Debit	Credit  
    
Jan 1 2018	No Entry when granting    
    
Dec 31 2018	Compensation Expense ($350,000/2 Years)	$175,000  
      Paid in Capital Stock Options  $175,000  
 (for Year 2018 - compensation expense)    
    
Apr 1 2019	Paid in Capital Stock Options	$ 17,500  
      Compensation Expense  $ 17,500  
 (To record termination of stock options)    
 $350,000*2,000/20,000*1/2    
    
Dec 31 2019	Compensation Expense ($350,000/2 Years)	$157,500  
      Paid in Capital Stock Options  $157,500  
 (for Year 2019 - compensation expense)    
 $350,000*18,000/20,000*1/2    
    
Mar 31 2020	Cash (12,000*$25)	$300,000  
 Paid in Capital Stock Options ($350,000*12,000/20,000)	$210,000  
      Common Stock (12,000*$10)  $120,000  
      Paid in capital, in excess of par-Common  $390,000  
 (To record exercise of stock options)