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The entry credit is to a special additional paid-in capital account. Let’s take a look at an example. Friends Company, a fictitious entity, grants its CEO 5,000 stock options on January 1, 20X4. Each option allows the CEO to purchase 1 share of $1-par-value stock for $80 on December 31, 20X7. 14-Bonds with detachable warrants Flashcards | Quizlet The detachable stock warrants account also is debited (closed). Credited are common stock and contributed capital in excess of par. If any of the warrants expire without being exercised, the balance in the detachable stock warrants account is closed (debited) to …

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