Reference no: EM132467210

ACME Corporation, a publicly traded company, adopted a stock option plan on June 1, 2017 that designated 90,000 common shares as available for the granting of options to the officers of the corporation at an exercise price of $4.00 per share. The market value of the shares was $25.00 on June 1, 2017.

Point 1: On January 1, 2018, options to purchase 35,000 of the shares were granted to the company president as follows: 20,000 for services in 2018 and 15,000 for services in 2019. Also on this date, options to purchase 27,500 shares were granted to the 1st Vice-President of the company for services rendered as follows: In 2018 10,000 share and in 2019 17,500 shares.

Lastly the 2nd Vie President for 27,500 as follows: In 2018 17,500 shares and in 2019 10,000 shares.

Point 1: The options were exercisable for a period of one year following the year in which the services were rendered. The market value of these shares was $28.00 on January 1, 2018. The value of the options on January 1, 2018 was estimated to be around $225,000.

Point 2: In 2019 both the President and 1st Vice-President exercised one-half of their options because the market value of the shares was greater than the exercise price. Also in mid 2018 the 2nd Vice President left the company.

Point 3: On December 30, 2020, both the President and 1st Vice-President exercised three-quarters of their stock options, when the market price was $30.00 per share. The company has a December 31 year end.

Question A) Journal entries to record the stock option plan over the various dates.