27) On August 1, 2019, United Corporation issued $10 million of 8% convertible bonds at 105, The bonds mature in 20 years. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of United $5 par common stock. World Company purchased 10% of the bond issue. On August 1, 2019, the market value per share for United stock was $56 and the market value of each warrant was $6. In March 2025, when United common stock had a market price of $70 per share and the unamortized premium balance was $300,000, World exercised the warrants it held. Required: 1. Prepare the journal entries on August 1, 2019, to record: (A) the issuance of the bonds by United (B) the investment by World. 2. Prepare the journal entries for both companies in March 2025 to record the exercise of the warrants