The stockholders equity section of Martino Inc. at the beginning of the current year appears below. Common
Fantastic news! We've Found the answer you've been seeking!
Question:
The stockholders equity section of Martino Inc. at the beginning of the current year appears below.
Common stock, $ par value, authorized shares, shares issued and outstanding
Paidin capital in excess of parcommon stock Retained earnings
During the current year, the following transactions occurred.
$
Thecompanyissuedtothestockholdersrights.Tenrightsareneededtobuyoneshareofstock at $ The rights were void after days. The market price of the stock at this time was $ per share.
The company sold to the public a $ bond issue at The company also issued with each $ bond one detachable stock purchase warrant, which provided for the purchase of com mon stock at $ per share. Shortly after issuance, similar bonds without warrants were selling at and the warrants at $
All but of the rights issued in were exercised in days.
At the end of the year, of the warrants in had been exercised, and the remaining were out
standing and in good standing.
During the current year, the company granted stock options for shares of common stock to company executives. The company, using a fair value optionpricing model, determines that each option is worth $ The option price is $ The options were to expire at yearend and were consid ered compensation for the current year.
Allbutsharesrelatedtothestockoptionplanwereexercisedbyyearend.Theexpirationresulted because one of the executives failed to fulfill an obligation related to the employment contract.
Instructions
a Prepare general journal entries for the current year to record the transactions listed above.
b Prepare the stockholders equity section of the balance sheet at the end of the current year. Assume
that retained earnings at the end of the current year is $
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date: