Nappy Lodge Issued 15,000 At-The-Money Stock Options to Its Management

Essay

Nappy Lodge issued 15,000 at-the-money stock options to its management on January 1, 2021. These options vest on January 1, 2024. Nappy's share price was $20 on the grant date and $25 on the vesting date. Estimates of the fair value of the options showed that they were worth $3 on the grant date and $11 on the vesting date. On the vesting date, management exercised all 15,000 options. Nappy has a December 31 year-end.
Required:
Record all of the journal entries relating to the stock options.