a) J Inc. issues 10,000 shares of $100 par value preferred stock at a price of $130 per share with a detachable warrant that allows the holder to purchase for each preferred share one share of $25 par common stock at $50 per share. Following the issuance, the preferred stock was selling ex-rights (without the warrants) at a market price of $115, while the warrant was selling for $10 each. The following calculations are required for the issue of preferred Shares: [7M] Issue Value (Cash)= Market Value of Preferred Stock: = Market Value of Warrants: = Total Market Value: = Allocation to Preferred Stock: Allocation to Warrants: . . The journal entry to record issue of preferred shares with stock warrants:[4M] The following computations are required for the issue of common shares using the stock warrants: [4M] Cash received from issue of common shares = Need to eliminate the Common Stock Warrants = Value of Common Stock @ $25 par = Paid-in-Capital on Common Stock = . The journal entry to record issue of common shares using stock warrants.[4M] a) J Inc. issues 10,000 shares of $100 par value preferred stock at a price of $130 per share with a detachable warrant that allows the holder to purchase for each preferred share one share of $25 par common stock at $50 per share. Following the issuance, the preferred stock was selling ex-rights (without the warrants) at a market price of $115, while the warrant was selling for $10 each. The following calculations are required for the issue of preferred Shares: [7M] Issue Value (Cash)= Market Value of Preferred Stock: = Market Value of Warrants: = Total Market Value: = Allocation to Preferred Stock: Allocation to Warrants: . . The journal entry to record issue of preferred shares with stock warrants:[4M] The following computations are required for the issue of common shares using the stock warrants: [4M] Cash received from issue of common shares = Need to eliminate the Common Stock Warrants = Value of Common Stock @ $25 par = Paid-in-Capital on Common Stock = . The journal entry to record issue of common shares using stock warrants.[4M]