45.Subject : - Accounting Prepare the stockholders' equity section of the balance sheet at the end of the current year. Assume that retained earnings at theend of the current year is $770,000.eTextbook and MediaCARLA VISTA INC.Balance Sheet The stockholders equity section of Carla Vista Inc. at the beginning of the current year appears below.Common stock, $10 par value, authorized 911,000 shares, 309,000 shares issued and outstandingPaid-in capital in excess of par-common stockRetained earningsDuring the current year, the following transactions occurred.The company issued to the stockholders 102,000 rights. Ten rights are needed to buy one share of stock at $35. The rightswere void after 30 days. The market price of the stock at this time was $37 per share.1.2.3.4.5.$3,090,000646,000604,0006.The company sold to the public a $181,000, 10% bond issue at 104. The company also issued with each $100 bond onedetachable stock purchase warrant, which provided for the purchase of common stock at $33 per share. Shortly afterissuance, 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 goodstanding.During the current year, the company granted stock options for 10,000 shares of common stock to company executives. Thecompany, using a fair value option-pricing model, determines that each option is worth $10. The option price is $33. Theoptions were to expire at year-end and were considered compensation for the current year.All but 1,000 shares related to the stock-option plan were exercised by year-end. The expiration resulted because one of theexecutives failed to fulfill an obligation related to the employment contract.

The balance sheet is the performance sheet of the company. Balance sheet includes all assets or…

Answered: Prepare the stockholders' equity…

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 $770,000. CARLA VISTA INC. Balance Sheet

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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