Stock option plan ISU company adopted

(Stock Option Plan) ISU Company adopted a stock option plan on November 30, 2005, that provided that 70,000 shares of $ 5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $8 a share. The market value was $12 a share on November 30, 2005.

On January 31, 2008, both President Pedro and vice president Leonato exercised their options for 13,000 and 7,000 shares respectively, when the market price was $16 a share. Hint: (LO4)

Instructions

Prepare the necessary journal entries in 2005 when the stock option plan was adopted, in 2006 when options were granted, in 2007 when options lapsed, and in 2008 when options were exercised

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