Answer & Explanation:
December 31, 2021
Compensation Expense 164,200
Paid-in Capital (328,400 x 0.5) 164200
To record compensation expense
April 1, 2022
Paid-in Capital 32,840
Compensation Expense (328,400 x 2100/21000) 32,840
To record termination of stock option
December 31, 2022
Compensation Expense 147,780
Paid-in Capital (328,40 x 1/2 x 18900/21000) 147,780
To record compensation expense
March 31 , 2023
Cash ( 12,600 x $25) 315,000
Paid-in Capital (328,400 x 12,600/21,000) 197040
Common Stock (21,000 x $10) 126,000
Paid-in Capital in Excess of Par 386,040
To record exercise of stock option
December 31, 2023
6,300 stock options not exercised (21,000 - 2,100 - 12,600)
