Problem 16-1 The stockholders' equity section of Wildhorse Inc. at the beginning of the current year appears below Common stock, $10 par value, outet ,007,000 shares, 319.000 shares issued and $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 outstandinng 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 executives failed to fulfill an obligation related to the employment contract. Your answer is partially correct. Try again. 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 titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) No. Account Titles and Explanation Credit Debit 1. No Entry No Entry 2. Cash 200850 Discount on Bonds Payable 7800 Bonds Payable 195000 Paid-in Capital-Stock Warrants 13650 3. Cash 285000 Common Stock 95000 Paid-in Capital in Excess of Par Common Stock 190000 4. Cash 43680 Paid-in Capital-Stock Warrants 12480 Common Stock 15600 40560 Paid-in Capital in Excess of Par Common Stock 5. Compensation Expense 93000 93000 Paid-in Capital-Stock Options 6. For options exercised: Cash 2577960 Paid-in Capital-Stock Options 83700 83700 Common Stock 2577960 Paid-in Capital in Excess of Par Common Stock Your answer is partially correct. Try again. Prepare the stockholders' equity section of the balance sheet at the end of the current year. Assume that retained earnings at the end of the current year is $680,000. Wildhorse Inc Balance Sheet Stockholders' Equity Paid-in Capital Common Stock x Paid-in Capital in Excess of Par Common Stock Paid-in Capital-Stock Warrants Retained Earnings Total Stockholders' Equity