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Company issued 4 , 8 0 0 of its $ 1 , 0 0 0 par value bonds for $ 1 , 4 1 0

 Company issued 4,800 of its $ 1,000 par value bonds for $ 1,410, providing total cash proceeds of $ 6,768,000. There are no bond issue costs. The market price of Redmond's common shares on the date that the bonds were issued was $ 55 per share. The bonds were sold with 72,000 warrants to acquire 72,000 shares of the company's $ 5 par value common stock for $ 65 per share. That is, each bond carries 15 warrants. Redmond has existing bonds outstanding that currently trade without warrants at $ 1,210. There are other Redmond warrants outstanding that trade for $ 50 each. Assume that the fair value of the bonds is more reliable than the market value of the warrants. 1. Prepare the journal entry to record issuance of the bonds assuming that the warrants are nondetachable. 2. Prepare the journal entry to record the issuance of the bonds assuming that the warrants are detachable using the proportional method. 3. Prepare the journal entry to record the issuance of the bonds assuming that the warrants are detachable using the incremental method. 4.Assuming that the incremental method is used,
prepare the journal entry required to record the exercise of all warrants.  

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