The stockholders' equity section of Sage Inc. at the beginning of the current year appears below.

Common stock, $$10$ par value, authorized $1,038,000$ shares, $327,000$ shares issued and outstanding $$3,270,000$

Paid$-$in capital in excess of par$-$common stock

$657,000$

Retained earnings

$624,000$

During the current year, the following transactions occurred.

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.

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.$

All but $5,000$ of the rights issued in $(1)$ were exercised in $30$ days.

At the end of the year, $80\%$ of the warrants in $(2)$ had been exercised, and the remaining were outstanding and in good standing.

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.

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.

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 intermedilate calculations to $7$ decimal places, e$.1\mathrm{.}2468756$ and final answers to $0$ decimal places, e$\mathrm{.}8.5,125.)$

No$.$ Account Titles and Explanation

Debit

Credit

No Entry

Discount on Bonds Payable

Paid$-$in Capital$-$Stock Warrants

Common Stock

Paid$-$in Capital in Excess of Par $-$ Common Stock

$4.$ Paid$-$in Capital$-$Stock Warrants

Common Stock