1. On August 1, 2022, United Corporation issued $6 million of 8% convertible bonds at 102. The bonds mature in 20 years. Each $1,000 bond was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $30, one share of United no par common stock. On August 1, 2022, the market value per share for United stock was $33 and the market value of each warrant was $3. In March 2028, when United common stock had a market price of $55 per share and the unamortized discount balance was $30,000, 20% of the warrants were exercised. Prepare the journal entry to record the issuance of the bonds. Prepare the journal entry to record the exercise of the warrants.

Please explain the journal entry to record the exercise of the warrants.