Sands company issues face value bonds for 170,000 at a 10% coupon rate. The bonds with warrants are valued at 24,000. The bonds without warrants are valued at 136,000. The bonds that have stock warrants are issued in the market at 152,000. Each stock warrant can have two shares of common stock at $40 per share with a $2 par.
From this information, what entry would be made if all of the stock warrants in the prior question are to be exercised? The stock price at this time is now $50 per share.