A Company Issued 105,000 Preferred Shares and Received Proceeds of $6,100,000

question 100

Essay

A company issued 105,000 preferred shares and received proceeds of $6,100,000. These shares have a benchmark value of $50 per share and pay cumulative dividends of 6%. Buyers of the preferred shares also received a detachable warrant with each share purchased. Each warrant gives the holder the right to buy one common share at $35 per share within 10 years.
The underwriter estimated that the market value of the preferred shares alone, excluding the conversion rights, is approximately $55 per share. Shortly after the issuance of the preferred shares, the detachable warrants traded at $5 each.
Required:
Record the journal entry for the issuance of these shares and warrants under IFRS.

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Definitions:

Socially Competent

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Peer Group

A social group consisting of individuals of similar age, interests, or status, influencing behaviors and attitudes.

Social Interactions

The dynamic, reciprocal exchanges between two or more individuals, including verbal and non-verbal communication.

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A building used for public Christian worship or a Christian religious organization.