Current Attempt in Progress

On January $1,2026,$ Nash Inc. granted stock options to officers and key

employees for the purchase of $18,000$ shares of the company's $$10$ par

common stock at $$23$ per share. The options were exercisable within a $5-$

year period beginning January $1,2028,$ by grantees still in the employ of the

company, and expiring December $31,2032.$ The service period for this

award is $2$ years. Assume that the fair value option$-$pricing model

determines total compensation expense to be $$368,000.$

On April $1,2027,1,800$ options were terminated when the employees

resigned from the company. The market price of the common stock was

$$34$ per share on this date.

On March $31,2028,10,800$ options were exercised when the market price

of the common stock was $$42$ per share.

Prepare journal entries to record issuance of the stock options, termination

of the stock options, exercise of the stock options, and charges to

compensation expense, for the years ended December $31,2026,2027,$ and

$($List all debit entries before credit entries. Credit account titles

are automatically indented when amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts. Record entries in the order

displayed in the problem statement.$)$

Date Account Titles and Explanation