On January 1, 2018, The Ultimate Accountant Inc. granted stock options to officers and key employees for

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On January 1, 2018, The Ultimate Accountant Inc. granted stock options to officers and key employees for the purchase of 150,000 of the company’s no par value common shares at $22 each. The options were exercisable between January 1, 2021, and December 31, 2025, by grantees still employed by the company. The market price of The Ultimate Accountant’s common shares was $22 per share at the date of grant. Using the Black–Scholes option pricing model, the company estimated the fair value of the options to be $450,000. 

On April 30, 2021, 90,000 options were exercised when the market value of common stock was $29 per share. An additional 50,000 options were exercised on June 30, 2021, when the market value of the shares was $30 each. The remainder of the options expired unexercised. The company has a December 31 year-end.


Required:

Record all required journal entries for The Ultimate Accountant’s stock options.

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