Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please provide all steps! thank you! sighmen CALCULATOR FULL SC PRINTER V NEXT Problem 16-1 The stockholders' equity section of Crane Inc. at the beginning
please provide all steps! thank you!
sighmen CALCULATOR FULL SC PRINTER V NEXT Problem 16-1 The stockholders' equity section of Crane Inc. at the beginning of the current year appears below Common stock, $10 par value authorized 1,016,000 shares, 327,000 shares issued and outstanding Paid-in capital in excess of par- Retained earnings $3,270,000 587,000 546,000 common stock During the current year, the following transactions occurred. 1. The company issued to the stockholders 94,000 rights. Ten rights are needed to buy one share of stock at $32. The rights were void after 30 days. The market price of the stock at this time was $34 per share. 2 he company sold to the public a $188 000 10% bond issue at 104 Ihe company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of ommon stock at $30 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at 8. 3. All but 4,700 of the rights issued in (1) were exercised in 30 days 4. At the end of the year, 80of 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 10,100 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 $30. The options were to expire at year-end and were considered compensation for the current year. 6. All but 1,010 shares related to the stock-option plan were exercised by year-end. The expiration resulted because one of the executives failed to fulfill an obligation related to the employment contract Prepare general journal entries for the current year to record the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tiles and enter 0 for the amounts, Round intermediate calculations to 5 decil places, e.g. 1.24687 and final answers to decimal places, e.g. 5,125.) No. Account Titles and Explanatlon Debit CreditStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started