Amy Dyken, controller at Teal Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Teal's financial statements. Below is selected financial information for the fiscal year ended June 30, 2017. TEAL PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET INFORMATION JUNE 30, 2017 Long-term debt $1,020,000 4,970,000 5,940,000 $11,930,000 Notes payable, 10% 996 9% convertible bonds payable 10% bonds payable Total long-term debt Shareholders equity Preferred stock, 7% cumulative, $50 par value, 101,000 shares authorized, 25,250 shares issued and outstanding Common stock, $1 par, 10,100,000 shares authorized, 1,010,000 shares issued and outstanding Additional paid-in capital Retained earnings $1,262,500 1,010,000 3,950,000 6,110,000 $12,332,500 Total shareholders' equity The following transactions have also occurred at Teal. 1. Options were granted on July 1, 2016, to purchase 180,000 shares at $16 per share. Although no options were exercised during fiscal year 2017, the average price 2. Each bond was issued at face value. The 9% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after S years per common share during fiscal year 2017 was $20 per share. and were issued in fiscal year 2016