12. On August 1, 2012, Keye Corporation issued $10 million of 8% convertible bonds at 105. The bonds mature in 20 years. Each S1,000 bond was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of United SS par common stock. Leger Company purchased 25% of the bond issue. On August 1, 2012, the market value per share for Keye stock was $56 and the market value of each warrant was $6. In March 2018, when United common stock had a market price of $70 per share and the unamortized premium balance was $300,000, Leger exercised the warrants it held. Required: 1. Prepare the journal entries on August 1, 2012, to record (a) the issuance of the bonds by United. 2. Prepare the journal entries for United to record the exercise of the warrants