On January 1, 2021, Happiness-R-Us Inc. raised $5.1 million by issuing $4.6 million of 4%, eight-year convertible bonds maturing on January 1, 2029. Interest was paid semi-annually on June 30 and December 31. Each $1,000 bond could be converted into 36 no-par value common shares. In addition, each bond included 44 detachable common stock warrants with an exercise price of $36 each. Immediately after issuance, the warrants, which expire on January 1, 2029, traded at $2 each on the open market. Similar non-convertible bonds issued without warrants were yielding 5% at that time. On July 1, 2025, warrant holders exercised 70% of the warrants. The shares of Happiness-R-Us traded at $44 each on that day. On July 1, 2026, bondholders converted 60% of the bonds to common shares. The interest payment had been made on June 30, 2026, in the normal fashion. The shares of Happiness-R-Us traded at $46 each on that day. Happiness-R-Us prepares its financial statements in accordance with IFRS. Required Requirement c. Prepare the journal entry to record exercise of the warrants on July 1, 2025. (Record debits first, then credits. Explanations are not required. Leave any unused cells blank.) Date Accounts Debit Credit 2025 July 1