On January 1, 2019, Barwood Ltd. granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood's £5 par value ordinary shares at £50 per share at any time during the next 5 years. The market price of the shares is £65 per share on the date of grant. The fair value of the options at the grant date is £150,000. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2019, and December 31, 2019 and 2020.