The stockholders equity section of Shamrock Inc. at the beginning of the current year appears below. $ 2,890.000 Common stock, $ 10 par value, authorized 1,037,000 shares, 289,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings 636,000 515,000 During the current year, the following transactions occurred. 1. 2. 3. 4. The company issued to the stockholders 102,000 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 $ 192,000, 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 5,100 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 10,200 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 1,020 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. 5. 6. Debit Credit No. Account Titles and Explanation 0 1. No Entry No Entry 199680 2. Cash 7680 Discount on Bonds Payable 192000 Bonds Payable 15360 Paid-in Capital-Stock Warrants 319770 3. Cash 96900 Common Stock 222870 Paid in Capital in Excess of Par. Common Stock 12288 4. Paid-in Capital Stock Warrants 47616 Cash 15360 Common Stock 44544 Paid-in Capital in Excess of Par-Common Stock 5. Compensation Expense 102000 Paid-in Capital-Stock Options 102000 6. For options exercised: Cash 284580 Paid-in Capital-Stock Options 91800 Common Stock 91800 Pald.in Capital in Excess of Par-Common Stock 284580 For options lapsed: Pald-in Capital-Stock Options 10200 Compensation Expense 10200 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 $ 733,000. Shamrock Inc. Balance Sheet Stockholders'Equity Paid-in Capital Common Stock 493060 Paid-in Capital in Excess of Par - Common Stock 1187994 Pald-in Capital Stock Warrants 3072 $ 1684126 Retained Earnings 733000 Total Stockholders' Equity 951126