Pelham Farms granted 200,000 stock options to its employees. The options expire 10 years after the grant date of January 1, 2018, when the share price was $25. Employees still employed by Pelham five years after the grant date may exercise the option to purchase shares at $50 each; that is, the options vest to the employees after five years. A consultant estimated the value of each option at the date of grant to be $1 each. 

Required:

Record the journal entries relating to the issuance of stock options.