Newbridge Networks granted Larry stock options for 100,000 shareson December 31, 1990.  The strike price was $32.00 a share based on the market value on December 31, 1990.  The options were allocated from 100,000 treasury stock shares created and issued in 1985 at $1.00 par value.  Larry could begin to exercise 25% of his options annually on the grant anniversary beginning on December 31, 1991.  On the 1991 anniversary, the market value was $40.00 a share. On the 1992 anniversary, the market value was $80.00 a share. Larry exercised his options in 1991 and 1992. On the 1993 anniversary, the market value was $30.00 a share, and on the 1994 anniversary, the market value was $20.00 a share so Larry did not exercise his options in 1993 and 1994.
 
Show the Newbridge Networks journal entries that reflect the related stock transactions and balances on:
 
 -December 31, 1985  
 -December 31, 1990
 -December 31, 1991
 -December 31, 1992
 -December 31, 1993
 -December 31, 1994

Answer rating: 100% (QA)

December 31 1985 Treasury stock will be debited and cash will be credited for 10000... View the full answer