Page of 5 ZOOM Practice Exercises - Stock Options On November 1, 2020, Pronghorn Company adopted a stock-option plan that granted options to key executives to purchase 38,100 shares of the company's...

Extracted text: Page of 5 ZOOM Practice Exercises - Stock Options On November 1, 2020, Pronghorn Company adopted a stock-option plan that granted options to key executives to purchase 38,100 shares of the company's $10 par value common stock. The options were granted on January 2, 2021 and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $571,500. 4. All of the options were exercised during the year 2023: 25,400 on January 3 when the market price was $67, and 12,700 on May 1 when the market price was $76 a share. Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023. General Journal Debit Credit ENG ASA qb INTL *- Prisc F4 F5 F6 F7 F8 F9 F10 F11 F12 Ins 23