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Prepare the journal entries for the following transactions involving stock warrants
A. The firm issues 5-year warrants that give the holder the right to purchase a share of common stock with a par value of $1 for $10.
B. The firm sells 500 bonds with detachable stock warrants for $600,000. The 5-year warrants give the holder the right to purchase a share of $1 par value common stock for $10. The firm has determined that the fair value of the warrants is $2500 and the fair value of the bonds without warrants was $550,000.
C. All the warrants are exercised.
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