1. On January 1, 2015, ABC Co. issued $100,000 8% convertible Bond due 2035 at 103. The bonds are convertible at the option of the holder into $10 par common stock at the conversion ratio of 40 shares per $1000 bond. ABC recently issued nonconvertible, 20-year, 8% bonds at 98. Record the entry ABC would make when the bonds are initially issued: Assume that half of the bonds are converted when the book value of the bonds is $102,000. Record the entry ABC would make to record the conversion of the bonds. 2. On January 1, 2015, ABC Co. issued $100,000 8% Bond due 2022 at 103. Accompanying each $1,000 bond were 20 detachable warrants. Each warrant entitled the holder to buy one share of $10 par common stock at $25 per share. At the time of issue, the warrants were listed on the stock exchange for $3 per warrant. Similar bonds without the warrants are priced at 94. Record the entry ABC would make when the bonds are initially issued: > On 5/1/16, 1000 warrants were exercised. Record the entry ABC would make to record the exercise of the warrants