Corp has the following information available for the year 2020.

A. As of January 1, 2020, there were 500,000 shares of its $1 par common stock authorized, 350,000 shares issued, and 250,000 shares outstanding. The treasury stock on the books at this time was recorded at a cost of $9 per share.

B. There were 15,000 employee stock options granted during the prior year on June 30, 2019 that were scheduled to vest on June 30, 2020. The options had an estimated grant date fair value of $5 and a strike price of $12 per share. The options vested as scheduled on June 30, 2020.

C. On January 1, 2020, Moira granted new 20,000 new employee stock options with an estimated grant date fair value of $7 and a strike price of $18 per share. The options are scheduled to vest on December 31, 2020.

D. On February 1, 2020, Moira resold 40,000 shares of treasury stock for $20 per share.

E. On July 1, 2020, all 15,000 options were exercised when the market value of the common stock was $16 per share.

F. On October 1, 2020, the company jointly issued 10,000 shares of cumulative, convertible 8% preferred stock having a par value of $50 along with 20,000 shares of common stock in exchange for a parcel of land. Each share of preferred stock is convertible into 6 shares of Moira's common stock. None of the preferred stock were converted in 2020. The market value of the common stock on October 1, 2020 was $12. The land’s value had been recently appraised at approximately $900,000.

G. On November 30, 2020, the company repurchased 30,000 shares of its common stock for $7 per share.

H. The average market price of Moira’s common stock during the first six months of the year was $20 and the average market price over the course of the entire year was $11.

I. Net income for the year 2020 was $435,000.

1. Prepare all necessary equity-related journal entries for the year 2020.

2. What was the total number AND total cost of treasury stock held by Moira as of December 31, 2020?

3. Calculate Basic and Diluted EPS and identify any antidilutive shares.

Answer rating: 100% (QA)

1 a January 1 2020 500000 shares of common stock authorized 350000 shares issued and 250000 shares o... View the full answer