The stockholders' equity section of Vaughn Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 934,000 shares, 280,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings $2,800,000 577,000 597,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 95,000 rights. Ten rights are needed to buy one share of stock at $34. The rights were void after 30 days. The market price of the stock at this time was $36 per share. 2. The company sold to the public a $181,000, 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 $32 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8. 3. All but 4,750 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 9,100 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 $32. The options were to expire at year-end and were considered compensation for the current year. 6. All but 910 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 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 188240 Discount on Bonds Payable 7240 Bonds Payable 181000 Paid-in Capital-Stock W 14480 Cash 306850 Common Stock 90250 Paid-in Capital in Exces 216600 4. Paid-in Capital-Stock Warr. 11584 Cash 46336 Common Stock 14480 Paid-in Capital in Exces 43440 5. Compensation Expense 91000 Paid-in Capital-Stock O 91000 6. For options exercised: Cash 262080 Paid-in Capital-Stock Optic 81900 Common Stock 81900 Paid-in Capital in Exces 262080 For options lapsed: Paid-in Capital-Stock Optic 9100 Compensation Expense 9100 Show Work is REQUIRED for this question: Open blank Show Work Copy Show Work from Previous attempt (b) 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 $676,000. Vaughn Inc. Balance Sheet Stockholders' Equity Paid-in Capital Common Stock Paid-in Capital in Excess of Paid-in Capital-Stock Warr Retained Earnings 676000 Total Stockholders' Equity Show Work is REQUIRED for this question: Open Show Work The stockholders' equity section of Vaughn Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 934,000 shares, 280,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings $2,800,000 577,000 597,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 95,000 rights. Ten rights are needed to buy one share of stock at $34. The rights were void after 30 days. The market price of the stock at this time was $36 per share. 2. The company sold to the public a $181,000, 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 $32 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8. 3. All but 4,750 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 9,100 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 $32. The options were to expire at year-end and were considered compensation for the current year. 6. All but 910 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 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 188240 Discount on Bonds Payable 7240 Bonds Payable 181000 Paid-in Capital-Stock W 14480 Cash 306850 Common Stock 90250 Paid-in Capital in Exces 216600 4. Paid-in Capital-Stock Warr. 11584 Cash 46336 Common Stock 14480 Paid-in Capital in Exces 43440 5. Compensation Expense 91000 Paid-in Capital-Stock O 91000 6. For options exercised: Cash 262080 Paid-in Capital-Stock Optic 81900 Common Stock 81900 Paid-in Capital in Exces 262080 For options lapsed: Paid-in Capital-Stock Optic 9100 Compensation Expense 9100 Show Work is REQUIRED for this question: Open blank Show Work Copy Show Work from Previous attempt (b) 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 $676,000. Vaughn Inc. Balance Sheet Stockholders' Equity Paid-in Capital Common Stock Paid-in Capital in Excess of Paid-in Capital-Stock Warr Retained Earnings 676000 Total Stockholders' Equity Show Work is REQUIRED for this question: Open Show Work