The stockholders' equity section of Kingbird Inc. at the beginning of the current year appears below Common stock, $10 par value authorized 1,038,000 shares, 327,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings $3,270,000 657,000 624,000 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 $33. The rights were void after 30 days. The market price of the stock at this time was $35 per share 2. The company sold to the public a $197,000, 10% bond issue at 104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $31 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8 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 9,800 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 $31. The options were to expire at year-end and were considered compensation for the current year. 6. All but 980 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 Debit Credit 1. No Entry No Entry 2. Cash 204880 Discount on Bonds Payable 34147 Bonds Payable 197000 Paid-in Capital-Stock Warrants 42027 3. Cash 313500 Common Stock 95000 Paid-in Capital in Excess of Par - Common Stock 218500 4. Paid-in Capital-Stock Warrants 33622 Cash 33622 Common Stock 42027 Paid-in Capital in Excess of Par - Common Stock 25217 5. Compensation Expense 98000 Paid-in Capital-Stock Options 98000 6. For options exercised: Cash 273420 Paid-in Capital-Stock Options 30380 Common Stock 30380 Paid-in Capital in Excess of Par - Common Stock For options lapsed Paid-in Capital-Stock Options 273420 9800 9800