The board of directors of Muir Company adopted a fixed stock option plan to supplement the salaries of certain executives of the company. Options to buy common stock were granted as follows:

Options are nontransferable and can be exercised beginning three years after date of grant, provided the executive is still employed by the company. Stock options were exercised as follows:

Stock of the company has a $1 par value. The accounting period for the company is the calendar year.

Instructions:
1. Provide all entries that would be made on the books of Muir relative to the stock option plan for the period 2008 to 2013 inclusive.
2. Prepare the required note disclosure relative to the stock option plan for the year 2010 and for the year2012.

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Numbe Exercise Price of Shares at Date of Grant Option Value at Date of Grant Date Employee of Shares Price an 2008 D. R. Cal Jan. 2009 J. K. Nellson Jan. 2010 B. D. Gwynn 80,000 45,000 25.000 $30 38 43 $32 41 47 $ 9 10 Price of Shares Date Employee D. R. Call J. K. Nellson B. D. Gwynn Number of Shares at Date of Exercise Dec. 31, 2011 Dec. 3, 2012 Dec. 3, 2013 80,000 45,000 25.000 $48 43 49