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A company issues 1 , 0 0 0 , 0 0 0 of 7 % , 5 - year bonds with detachable stock warrants. The

A company issues 1,000,000 of 7%,5-year bonds with detachable stock warrants. The issuance price is $1,065,000. Each $1,000 bond has 20 warrants attached. The warrants entitle each bond holder to purchase one common share for $11 per share. Shortly after issuance, the warrants trade for $5.30 per warrant. The bonds trade at 103 ex-warrants.
Required:
1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Prepare the journal entry to record the exercise of the warrants when the market value per share is $15.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. Prepare the journal entry to record the expiration of the warrants expire (because the warrants are out of the money).(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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