The stockholders' equity section of Wildhorse Inc. at the beginning of the current year appears below. During the current year, the following transactions occurred. 1. The company issued to the stockholders 98,000 rights. Ten rights are needed to buy one share of stock at $31. The rights were void after 30 days. The market price of the stock at this time was $33 per share. 2. The company sold to the public a $188,000,10% bond issue at 103 . The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $29 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $7. 3. All but 4,900 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 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 $29. The options were to expire at year-end and were considered compensation for the current year. 6. 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. Question 9 of 9 0.33/1 2. Cash Discount on Bonds Payable Bonds Payable 188000 Paid-in Capital-Stock Warrants 3. Cash 288610 Common Stock 93100 Paid-in Capital in Excess of Par - Common Stock 195510 4. Cash 43616 Paid-in Capital-Stock Warrants \begin{tabular}{||l||} \hline \hline 12777 \\ \hline \hline \end{tabular} Common Stock 15040 Paid-in Capital in Excess of Par - Common Stock \begin{tabular}{||c||} \hline \hline 56393 \\ \hline \hline \end{tabular} 5. Compensation Expense Paid-in Capital-Stock Options 100000 6. For options exercised: Cash 261000 Paid-in Capital-Stock Options 90000 Common Stock \begin{tabular}{|r|} \hline 90000 \\ \hline 261000 \\ \hline \end{tabular} For options lapsed: Paid-in Capital-Stock Options 10000 Paid-in Capital-Expired Stock Options 10000