Journal entries for 4,5,6

The stockholders' equity section of Tamarisk Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 1,007,000 shares, 319,000 shares issued and outstanding $3,190,000 Paid-in capital in excess of par-common stock 575,000 Retained earnings 549,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 100,000 rights. Ten rights are needed to buy one share of stock at $30. The rights were void after 30 days. The market price of the stock at this time was $32 per share. 2. The company sold to the public a $195,000, 10% bond issue at 103. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $28 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $7. 3. All but 5,000 of the rights issued in (1) were exercised in 30 days. 4. At the end of the year, 80% of the warrants in (2) had been exercised, and the remaining were outstanding and in good standing. 5. During the current year, the company granted stock options for 9,300 shares of common stock to company executives. The company. using a fair value option pricing model, determines that each option is worth $10. The option price is $28. The options were to expire at year-end and were considered compensation for the current year. 6. All but 930 shares related to the stock-option plan were exercised by year-end. The expiration resulted because one of the cxecutives failed to fulfill an obligation related to the employment contract. Paid-in Capital-Stock Warrants Cash Common Stock 15600 Pald-in Capital in Excess of Par-Common Stock Compensation Expense Paid-in Capital-Stock Options 6. For options exercised: Cash Paid-in Capital-Stock Options Common Stock Paid-in Capital in Excess of Par - Comm For options lapsed: Paid-in Capital-Stock Options Compensation Expense Tamarisk Inc. Balance Sheet / Stockholders' Equity / Paid in Capital // Common Stock / Paid-in Capital in Excess of Par. Common Stock Paid-in Capital-Stock Warrants Retained Earnings Total Stockholders' Equity The stockholders' equity section of Tamarisk Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 1,007,000 shares, 319,000 shares issued and outstanding $3,190,000 Paid-in capital in excess of par-common stock 575,000 Retained earnings 549,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 100,000 rights. Ten rights are needed to buy one share of stock at $30. The rights were void after 30 days. The market price of the stock at this time was $32 per share. 2. The company sold to the public a $195,000, 10% bond issue at 103. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $28 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $7. 3. All but 5,000 of the rights issued in (1) were exercised in 30 days. 4. At the end of the year, 80% of the warrants in (2) had been exercised, and the remaining were outstanding and in good standing. 5. During the current year, the company granted stock options for 9,300 shares of common stock to company executives. The company. using a fair value option pricing model, determines that each option is worth $10. The option price is $28. The options were to expire at year-end and were considered compensation for the current year. 6. All but 930 shares related to the stock-option plan were exercised by year-end. The expiration resulted because one of the cxecutives failed to fulfill an obligation related to the employment contract. Paid-in Capital-Stock Warrants Cash Common Stock 15600 Pald-in Capital in Excess of Par-Common Stock Compensation Expense Paid-in Capital-Stock Options 6. For options exercised: Cash Paid-in Capital-Stock Options Common Stock Paid-in Capital in Excess of Par - Comm For options lapsed: Paid-in Capital-Stock Options Compensation Expense Tamarisk Inc. Balance Sheet / Stockholders' Equity / Paid in Capital // Common Stock / Paid-in Capital in Excess of Par. Common Stock Paid-in Capital-Stock Warrants Retained Earnings Total Stockholders' Equity