The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2013, to

Question:

The following transactions have also occurred at Fitzgerald.
1. Options were granted on July 1, 2013, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year; 2014, the average price per common share during fiscal year 2014 was $20 per share.
2. Each bond was issued at face value. The 8% convertible bonds will convert into at 50 shares per $1,000 bond. The bond are exercisable after 5 years and were issued in fiscal year 2013.
3.The preferred stock was issued in 2013
SELECTED 30,2014
Long -term debt
Notes payable, 10%.............................................................$1,000,000
8% convertible bonds payable...................................5,000,000
10% bonds payable................................................6,000,000
Total long-term debt...........................................$12,000,000
Shareholders' equity
Preferred stock, 6% cumulative, $50 per value, 100,000 shares authorized, 2500 shares issued and outstanding ....................................................$1,250,000
Common stock, $1 par, 10,000,000 share........................1,000,000
Additional paid in capital...........................................4,000,000
Retained earnings...................................................6,000,000
Total shareholders' equity......................................$12,250,000
Common Stock
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