• The company had 1,000,000 shares of $1 par common stock outstanding on January 1, 2018. On April 1, 2018, an additional 50,000 shares were issued for $15 per share. On November 1, 2019, the company purchased 30,000 shares of their own stock as treasury stock for $16 per share. The company uses the cost method to account for treasury stock. On December 1, 2020, the company declared and issued a 50% stock dividend. The market price of the Company A stock was $24 per share on that date.
• The company issued 10,000 bonds on January 2, 2016 at par. The bonds are 10-year bonds with a par value of $1,000 and a face interest rate of 8%. Each bond is convertible into 40 shares of Company A common stock. At December 31, 2020, none of the bonds have been converted.
• On January 1, 2019 the company issued 300,000 stock options to its CEO. The options allow the CEO to purchase common stock shares for $15 per share. The CEO may begin exercising the options on January 1, 2021 provided she is still employed by the company. She currently remains CEO of the company.
• The average market price of Company A common stock for year ended December 31, 2019 was $18 and for year ended December 31, 2020, it was $21. The December 31 closing market price for Company A common stock was $19 for 2019 and $23 for 2020.

NET INCOME 2020 2,400,000, 2019 7,384,000, 2018 4,240,000.

-PROVIDE THE JOURNAL ENTRIES REQUIRED TO RECORD THE TRANSACTIONS.

-CALCULATE EARNINGS PER SHARE, DILIUTED EPS