A company issued 100,000 preferred shares and received proceeds of S5,750,000. 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 S5 each

Required:

Record the journal entry for the issuance of these shares and warrants under IFRS.