On July 1, 2020, Juba Inc

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?


$\begin{array}{ll}A) \text{ Cash ............................................................................................... } & \quad \text{\ 120,000 \quad \quad \quad } \\ \text{ Common Shares.................................................................................. } & \quad\quad\quad\quad\quad\quad \text{\ 120,000 \quad \quad \quad } \\ B) \text{ Cash .........................................................................................} & \quad \text{\ 120,000 \quad \quad \quad } \\ \quad\quad \text{ Contributed Surplus-Stock Warrants..............................................} & \quad {\text { 10,000 }}{}\\\quad\quad \text{ Common Shares ...............................................................................} & \quad \quad\quad\quad\quad\quad {\text { 130,000 }}{}\\ C) \text{Cash ......................................................................................} & \quad \text{\ 120,000 \quad \quad \quad } \\ \quad\quad\text{Contributed Surplus-Stock Warrants...............................................} & \quad \text{\ 25,000 \quad \quad \quad } \\\quad\quad\text{Common Shares ..................................................................} & \quad \quad \quad \quad \quad\quad \text{\ 145,000 \quad \quad \quad } \\ D) \text{Cash ............................................................................................ } & \quad \text{\ 120,000 \quad \quad \quad } \\\quad\text{Contributed Surplus-Stock Warrants ..................................................} & \quad \text{\ 15,000 \quad \quad \quad } \\\quad\text{Common Shares ................................................................} & \quad\quad\quad \quad\quad\quad \text{\ 135,000 \quad \quad \quad } \\ \ \end{array}$