Answer:
The correct option is 2)Debit Cash 140,700, Debit Paid in Capital- stock options 46,900, Credit common stock 46,900, Credit Paid in capital- excess of par 140,700
Explanation:
Preparation of Journal Entry to record the exercise of 70% options
Dr Cash 140,700
(67,000 x 70% x 3)
Dr Paid in Capital- stock options 46,900
[67,000 x 70%)
Cr To Common stock 46,900
(67,000 x 70% x 1]
Cr To Paid in capital- excess of par 140,700
