Lakeshore Gelato issues 2, 500 shares of $30 par preferred stock with detachable warrants for $215, 000 on January 1, 20Y1. Each share of preferred stock is issued with 10 detachable warrants. Each warrant entitles the holder to purchase one share of common stock for $25. The warrants expire in 2 years. The fair market value of the preferred stock is $145, 000 on January 1, 20Y1, and the warrants sell for $3 per warrant. On July 1, 20Y2, the warrants are exercised to purchase common stock (with a par value of $10 per share). The exercise price is $25 per share. Record the Lakeshore Gelato Entries (rounded to the penny) for: (1) Issuance (round the aggregate value percentage to two decimals ie 75.45%) (2) Exercise of Warrants
Lakeshore Gelato issues 2, 500 shares of $30 par
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