Identifying and Analyzing Financial Statement Effects of Stock$-$Based Compensation

The stockholders$$ equity of Aspen Corporation at December $31,2019,$ follows.

$7\%$ Preferred stock, $$100$ par value, $20,000$ shares authorized;

$3,600$ shares issued and outstanding $$360,000$

Common stock, $$15$ par value, $300,000$ shares authorized;

$27,000$ shares issued and outstanding $405,000$

Paid$-$in capital in excess of par value$$preferred stock $32,400$

Paid$-$in capital in excess of par value$$common stock $324,000$

Retained earnings $292,500$

Total stockholders$$ equity $$1,413,900$

The following transactions, among others, occurred during the following year.

$$ Employees exercised $10,800$ stock options that were granted in $2015$ and had a three$-$year vesting period. These options had an estimated fair value of $$2$ at the grant date, and an exercise price of $$16.$ There were no other vested or unvested options after this exercise.

$$ Awarded $900$ shares of stock to new executives, when the stock price was $$36.$

$$ Sold $9,000$ shares to employees under the company$-$wide stock purchase plan. Under the plan, employees purchased the shares at a $10\%$ discount when the stock price was $$33$ per share.

$$ Granted $36,000$ new stock options, with a strike price of $$34$ and an estimated fair value of $$6.$ The options vest over three years.

Required

Prepare the December $31,2019,$ statement of stockholders$$ equity assuming that the company reports $2019$ pretax income of $$434,700$ before the effects of stock$-$based compensation. Assume the company has a $35\%$ tax rate.

ASPEN CORPORATION

Statement of Stockholders$$ Equity

Preferred Stock Common Stock Retained Earnings

Shares

Issued par $$100$ Paid$-$in

Capital in

Excess Shares

Issued Par $$15$ Paid$-$in

Capital in

Excess

Start of year Answer $1$

$0$

Answer $2$

$0$

Answer $3$

$0$

Answer $4$

$0$

Answer $5$

$0$

Answer $6$

$0$

Answer $7$

$0$

Stock options exercised Answer $8$

$0$

Answer $9$

$0$

Answer $10$

$0$

Answer $11$

$0$

Answer $12$

$0$

Answer $13$

$0$

Answer $14$

$0$

Stock award Answer $15$

$0$

Answer $16$

$0$

Answer $17$

$0$

Answer $18$

$0$

Answer $19$

$0$

Answer $20$

$0$

Answer $21$

$0$

Employee stock purchase Answer $22$

$0$

Answer $23$

$0$

Answer $24$

$0$

Answer $25$

$0$

Answer $26$

$0$

Answer $27$

$0$

Answer $28$

$0$

Stock options granted Answer $29$

$0$

Answer $30$

$0$

Answer $31$

$0$

Answer $32$

$0$

Answer $33$

$0$

Answer $34$

$0$

Answer $35$

$0$

Net income Answer $36$

$0$

Answer $37$

$0$

Answer $38$

$0$

Answer $39$

$0$

Answer $40$

$0$

Answer $41$

$0$

Answer $42$

$0$

End of year Answer $43$

$0$

Answer $44$

$0$

Answer $45$