On 1 July 2018, ABC company issued 5,000 shares of $25 par preference shares with detachable warrants. The package of the shares and warrants sells for $105. Each warrant enables the holder to purchase two shares of $10 par ordinary shares at $30 per share. Upon the issuance of the shares, the warrants are selling at $14 each. The market price of the preference shares without the warrant is $96.

1-Prepare the necessary journal entry for ABC company to record the issuance of the preference shares and the detachable warrants?

2-Prepare the necessary journal entry for ABC company to record the exercise of the warrants, assuming that all of the warrants are exercised?