On January 1, 2020, Pharoah Corporation granted 5,400 options to executives. Each option entitles the holder to purchase one share of Pharoah’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $60 per share on the date of grant. The fair value of the options at the grant date is $141,000. The period of benefit is 2 years.

Prepare Pharoah’s journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                          1/1/2012/31/2012/31/21	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          1/1/2012/31/2012/31/21	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          1/1/2012/31/2012/31/21	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Answer rating: 100% (QA)

Date 01012020 Account Titles and Explanation No Entry 31122... View the full answer