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Sheridan Limited set up an ESOP that gives employees the option to purchase company shares...

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Accounting

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Sheridan Limited set up an ESOP that gives employees the option to purchase company shares for $10 per share. The option premium cost is $1 per share and Sheridan has set aside 10,000 shares. On January 1,2023 , employees purchase 6,700 options for $6,700. Subsequently, all 6,700 options are exercised, resulting in 6,700 shares being issued. Prepare the journal entries to record the purchase and exercise of the options. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

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