Rainy Lake Lodge issued 30,000 at-the-money stock options to its management on January 1, 2021. These options vest on January 1, 2024. Rainy Lake’s share price was $12 on the grant date and $18 on the vesting date. Estimates of the fair value of the options showed that they were worth $2 on the grant date and $7 on the vesting date. On the vesting date, management exercised all 30,000 options. Rainy Lake has a December 31 year-end. 

Required:

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