Question

The stockholders’ equity section of Grouper Inc. at the beginning of the current year appears below.

Common stock, $10 par value, authorized 1,016,000 shares, 327,000 shares issued and outstanding		$3,270,000
Paid-in capital in excess of par—common stock		587,000
Retained earnings		546,000

During the current year, the following transactions occurred.

1.		The company issued to the stockholders 94,000 rights. Ten rights are needed to buy one share of stock at $32. The rights were void after 30 days. The market price of the stock at this time was $34 per share.
2.		The company sold to the public a $188,000, 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 $30 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8.
3.		All but 4,700 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 10,100 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 $30. The options were to expire at year-end and were considered compensation for the current year.
6.		All but 1,010 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 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 $824,000.

Grouper Inc. Balance Sheet
select an opening section name                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
select an opening subsection name                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			$enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
					$enter a subtotal of the three previous amounts
enter a balance sheet item					enter a dollar amount
select a closing section name                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					$enter a total amount for this section

Answer 1

Current Assets/Current Liabilities is given in the format provided which doesnt belong to this question. It should be Stockholders equity that need to be given in the opening section.

Answer:

Balance Sheet (Partial)
Stockholders Equity:
Paid in Capital :
Common Stock, $10 par value, authorized 1,000,000 shares, 320,100 shares issued and outstanding	3,465,240
Paid in Capital in Excess of Par	1,098,272
Paid in Capital- Stock Warrants	3,008	4,566,520
Retained Earnings		824,000
Total Stockholders Equity		5,390,520

Calculation:

	Stock	Paid in Capital Excess of Par
At the beginning of the year	327,000	587,000
From Stock Rights	8,930	196,460
From Stock Warrants	1,504	42,112
From Stock Options	9,090	272,700
	346,524	1,098,272

Stock Rights:

Stock = (94,000 - 4,700)/10 = 8,930

Paid in Capital Excess of Par = (((94,000 -4,700)/10)*32)-8,930*10 = 196,460

Stock Warrants:

Stock = 80% * 188,000/100 = 1,504

Paid in Capital Excess of Par = (1,504*30)+((1,504*10)*80%)-(1,504*10) = 42,112

Stock Options:

Stock = ((10,100*10)-1,010*10)/10 = 9,090

Paid in Capital Excess of Par = ((10,100*10)-1,010*10)/10*30 = 272,700

Paid in Capital- Stock Warrants :

= ((80% * 188,000/100)*10)-(((80% * 188,000/100)*10)*80%) = 15,040 - 12,032 = 3,008