Accounting entry for stock warrants issuance

Question

Our company issued warrants and I was wondering if the following accounting is right:

Dr. expense (determined based on Black-Scholes method)

Dr. APIC (difference between the debit and credit)

Cr. Stock warrants (determined based on the strike price of the warrants)

Is this the correct entry? I will also appreciate if you can provide links to some examples.

Answer 1

it seems to me like the APIC debit is wrong.   there are two ways to value warrants 1) based on market prices if they happen to be publicly traded, or 2) based on various valuation methodologies such as the black-scholes method.  

But the expense would be a debt to compensation expense, and an equal credit to warrants.