Journal entries for stock warrants. Haskins Corporation sells 40,000 common stock warrants for $3 each on February 26, Year 6. Each warrant permits its holder to purchase a share of the firm's $5-par value common stock for $40 per share at any time during the next two years. The market price of the common shares was $30 per share on February 2 1 , Year 6. Holders of 30,000 warrants exercised their warrants on June 6, Year 7, at a time when the market price of the stock was $48 per share. Haskins Corporation experienced a major uninsured loss from a fire late in Year 7, and its market price fell immediately to $32 per share. The market price remained around

$32 until the stock wan^ants expired on February 26, Year 8. Present journal entries relating to these stock warrants on February 26, Year 6; June 6, Year 7; and February 26, Year 8.

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