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On January 1, 2020, Pharoah Corporation granted 5,400 options to executives. Each option entitles the holder to purchase one share of Pharoahs $5 par value

On January 1, 2020, Pharoah Corporation granted 5,400 options to executives. Each option entitles the holder to purchase one share of Pharoahs $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 Pharoahs 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

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