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Question 2 The stockholders' equity section of Pearl Inc. at the beginning of the current year appears below Common stock, $10 per value, authorized 954,000 shares, 307,000 shares issued and outstanding Pald.in capital in excess of par-common stock Retained earnings $3,070,000 553,000 614,000 During the current year, the following transactions occurred 1. The company issued to the stockholders 92,000 rights. Ten rights are needed to buy one share of stock at $35. The rights were void after 30 days. The market price of the stock at this time was $37 per share 2. The company sold to the public a $194,000, 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 $33 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $7. 3. All but 4,600 of the rights issued in (1) were exercised in 30 days 4. At the end of the year, 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 10.000 shares of common stock company i es. The company, using a few value option pricing model determines that each option is worth $10. The option price is $33. The options were to expire at year-end and were considered compensation for the current year 6. All but 1,080 shares related to the stock option plan were exercised by year and the expation resulted because one of the executives failed to fulfian obligation related to the employment contract (a) Your answer is partially correct. Try again Calen Prepare general journal entries for the current year to record the transactions listed above. Cred account s are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the accountries and enter for the amounts Round intermediate calculations to 5 decimal places, ... 1.24687 and Nina answers to decimal places, e.o. 5,125.) Debit No. Account Titles and Explanation Credit 1.No Entry T No Entry 1133 2. Cash 199820 Discount on Bonds Payable T 77607 T Bonds Payable L . 194000 T Paid-in Capital-Stock w 13580 3. TCash T 305900 T L T Common Stock 87400 Paid-in Capital in Exces T 218500 Paid-in Capital-Stock Warr 10864T Cash 51216 T Common Stock 15520 T Paid-in Capital in Exces 46560 10000 Privacy Policy 2009-2019 Inn Wi lich CL JT Paid-in Capital in Exces 46560 5. Compensation Expense 108000 TPaid-in Capital-Stock Optic 6. For options exercised: Cash 320760 TPaid-in Capital-Stock Optic 97200 T Common Stock 97200 320760 T Pald-in Capital in Exces For options lapsed: TPaid-in Capital-Stock Optic T o T Compensation Expense T Click If you would like to Show Work for this question: Open Show Work