
Answer:
The Journal entry and their narrations is shown below:-
Explanation:
The Journal Entry is shown below:-
Compensation expense Dr, Â Â Â Â Â Â $20,000
(60,000 Ă— 1) Ă· 3
  To Paid-in capital - stock options     $20,000
(Being compensation expense is recorded)
Therefore For recording the compensation expense we simply debited the compensation expenses and credited the Paid-in-Capital