Journal entries for stock warrants. Kiersten Corporation sells 60,000 common stock warrants for $4 each on February

Question:

Journal entries for stock warrants. Kiersten Corporation sells 60,000 common stock warrants for $4 each on February 26, 2008. Each warrant permits its holder to purchase a share of the firm’s $10 par value common stock for $30 per share at any time during the next two years. The market price of the common shares was $20 per share on February 26, 2008. Holders of 40,000 warrants exercised their warrants on June 6, 2010, at a time when the market price of the stock was $38 per share. Kiersten Corporation experienced a major uninsured loss from a fire late in 2010, and its market price fell immediately to $22 per share. The market price remained around $22 until the stock warrants expired on February 26, 2012. Present journal entries on February 26, 2008; June 6, 2010; and February 26, 2012, relating to these stock warrants.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...