Correct or provide the journal entries and provide a reason behind it:

1. JRS corp. obtained its start up capital on January 1, 20X8 by going public with an issue of common shares and warrants. The underwriter handling the initial issue decided that the best way to sell the 5,600,000 common shares was to attach one warrant to each of the common shares. Each warrant gave the holder the right to buy a common share for $8 each between April 1, 20X8 and June 30, 20X9. The entire issue including both the common shares and the warrants raised $50,000,000. The underwriter fees and other costs relating to the issue were only $4,600,000. The journal entry to record the above was as follows:

Dr. Cash 45,400,000

Dr. Underwriting expenses 4,600,000

Cr. Common shares 50,000,000

Immediately following the issue of these shares, they were trading in the market at $12 each while the warrants were trading at $6 each.

On April 1, 20X8 owners of the warrants exercised 70% of the warrants following a press release made by the company about a new contract signed by the company. At that time, the accountant recorded:

Dr. Cash 9,200,000

Cr. Common shares 9,200,000

The rest of the warrants were outstanding on December 31, 20X8.

2. On December 31, 20X8 the board of directors declared a cash dividend on its preferred shares of $6 per share. The record date and issue date were set for January 10, 20X9 and January 20, 20X9 respectively. However, the company did not declare dividends on the common shares. The accountant made no entries for these dividends, as the company did not pay them.