Adjusting entry: The company recognizes accrued interest for the bonds issued on August 1st. The company uses straight line method for the bond issued on August 1st. The fair value of the shares is $5,200,000. The August 1st transaction was: Issued $3 million of 10% nonconvertible bonds at 104. The bonds are due on July 31, 2041. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $60, one share of no par common stock. The market value of the common stock was $58 per share and the market value of the stock warrant was $8. What is the adjusting entry?