Becamel Company Issued 100,000 Preferred Shares and Received Proceeds of $6,500,000.These

Essay

Becamel Company issued 100,000 preferred shares and received proceeds of $6,500,000.These shares have a par value of $60 per share and pay cumulative dividends of 8%.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 $30 per share within 10 years.The underwriter estimated that the market value of the preferred shares alone,excluding the conversion rights,is approximately $62 per share.Shortly after the issuance of the preferred shares,the detachable warrants traded at $3 each.
Required:
Record the journal entry for the issuance of these shares and warrants.