Review the entries your predecessor made and to correct them if necessary

The company obtained its start up capital on January I, 20XI 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 common shares was to attach one warrant to each of the common shares. Each warrant gave the holder the right to buv a common share for SS each between July I, 20XI and June 30, 20X2 The entire issue including both the common shares and the warrants raised The underwriter fees and other costs relating to the issue were only S800,OOC The journal entry to record the abme was as follows: Underwriting expenses Common shares 800,000 Immediately following the issue of these shares, thev were trading in the market at Sg each while the warrants were trading at S4so each. On Juty I, 20XI owners of the warrants exercised 60% of the warrants following a press release made by the company about a new contract signed by the company. that time, the accountant recorded: Common shares The rest of the warrants were outstanding on December 31, 20XI_