The stockholders' equity section of Sandhill 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 $10,000$ 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 $1,000$ 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.

$($a$)$

Prepare general journal entries for the current year to record the transactions listed above. $($List all debit entries before credit

entries. 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. Do not round intermediate calculations. Round answers to $0$ decimal places, e$.$g$.$

$5,125.)$

No$.$ Account Titles and Explanation

Debit

Credit

For options exercised:

For options lapsed: