Montes Company issued 20,000 preference shares of P100 par value for P 2,500,000, with 20,000 warrants to acquire 10,000 ordinary shares, P50 par, at P60.  On the date of the issuance, the warrants have a market value of 10%, but the preference share has no known market value ex-warrant. What is the entry to record the exercise of share warrants?

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.