On July 1, 2020, Juba Inc. issued 10,000, $ 7 non-cumulative, no par value preferred shares for $ 1,050,000. Attached to each share was one detachable warrant, giving the holder the right to purchase one of Juba's no par value common shares for $ 30. At this time, the shares without the warrants would normally sell for $ 1,025,000, while the market price of the warrants was $ 2.50 each. On October 31, 2020, when the market price of the common shares was $ 33.50 and the market value of the warrants was $ 3.00, 4,000 warrants were exercised. Juba adheres to IFRS. As a result of the exercise of the warrants and the issuance of the related common shares, what journal entry would Juba make?

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The Answer of On July 1, 2020, Juba Inc. issued 10,000, $ 7 non-cumulative, no par value preferred shares for $ 1,050,000. Attached to each share was one detachable warrant, giving the holder the right to purchase one of Juba's no par value common shares for $ 30. At this time, the shares without the warrants would normally sell for $ 1,025,000, while the market price of the warrants was $ 2.50 each. On October 31, 2020, when the market price of the common shares was $ 33.50 and the market value of the warrants was $ 3.00, 4,000 warrants were exercised. Juba adheres to IFRS. As a result of the exercise of the warrants and the issuance of the related common shares, what journal entry would Juba make?