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

70.2K

Verified Solution

Question

Accounting

The stockholders’ equity section of Grouper Inc. at thebeginning 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 transactionsoccurred.
1. The company issued to the stockholders 94,000 rights. Tenrights are needed to buy one share of stock at $32. The rights werevoid 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 at104. The company also issued with each $100 bond one detachablestock purchase warrant, which provided for the purchase of commonstock at $30 per share. Shortly after issuance, similar bondswithout warrants were selling at 96 and the warrants at $8.
3. All but 4,700 of the rights issued in (1) were exercised in 30days.
4. At the end of the year, 80% of the warrants in (2) had beenexercised, and the remaining were outstanding and in goodstanding.
5. During the current year, the company granted stock options for10,100 shares of common stock to company executives. The company,using a fair value option-pricing model, determines that eachoption is worth $10. The option price is $30. The options were toexpire at year-end and were considered compensation for the currentyear.
6. All but 1,010 shares related to the stock-option plan wereexercised by year-end. The expiration resulted because one of theexecutives failed to fulfill an obligation related to theemployment contract.

Prepare the stockholders’ equity section of the balance sheet atthe end of the current year. Assume that retained earnings at theend of the current year is $824,000.
Grouper Inc.
Balance Sheet
select an opening section name                                                                 Current AssetsCurrentLiabilitiesIntangible AssetsLong-term InvestmentsLong-termLiabilitiesPaid-in CapitalProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal Stockholders' Equity
select an opening subsection name                                                                 Current AssetsCurrentLiabilitiesIntangible AssetsLong-term InvestmentsLong-termLiabilitiesPaid-in CapitalProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal 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 AssetsCurrentLiabilitiesIntangible AssetsLong-term InvestmentsLong-termLiabilitiesPaid-in CapitalProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal Stockholders' Equity
$enter a total amount for this section

Answer & Explanation Solved by verified expert

3.9 Ratings (347 Votes)

Current AssetsCurrent 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 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

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

1.		The company issued to the stockholders 94,000 rights. Tenrights are needed to buy one share of stock at $32. The rights werevoid 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 at104. The company also issued with each $100 bond one detachablestock purchase warrant, which provided for the purchase of commonstock at $30 per share. Shortly after issuance, similar bondswithout warrants were selling at 96 and the warrants at $8.
3.		All but 4,700 of the rights issued in (1) were exercised in 30days.
4.		At the end of the year, 80% of the warrants in (2) had beenexercised, and the remaining were outstanding and in goodstanding.
5.		During the current year, the company granted stock options for10,100 shares of common stock to company executives. The company,using a fair value option-pricing model, determines that eachoption is worth $10. The option price is $30. The options were toexpire at year-end and were considered compensation for the currentyear.
6.		All but 1,010 shares related to the stock-option plan wereexercised by year-end. The expiration resulted because one of theexecutives failed to fulfill an obligation related to theemployment contract.

Grouper Inc. Balance Sheet
select an opening section name Current AssetsCurrentLiabilitiesIntangible AssetsLong-term InvestmentsLong-termLiabilitiesPaid-in CapitalProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal Stockholders' Equity
select an opening subsection name Current AssetsCurrentLiabilitiesIntangible AssetsLong-term InvestmentsLong-termLiabilitiesPaid-in CapitalProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal 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 AssetsCurrentLiabilitiesIntangible AssetsLong-term InvestmentsLong-termLiabilitiesPaid-in CapitalProperty, Plant andEquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotalCurrent LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotalLiabilities and Stockholders' EquityTotal Long-termInvestmentsTotal Long-term LiabilitiesTotal Property, Plant andEquipmentTotal Stockholders' Equity		$enter a total amount for this section