Crane Corporation issued $3,500,$ five year, $4\%$ bonds at $104$ on January $1,2023.$ Interest is paid annually. Each $$1\mathrm{.}000$ bond carried one detachable warrant allowing the holder to purchase $100$ common shares in Crane at $$10$ per share, the price at which Crane shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid $6\%.$ On June $30,2023,700$ of the bond holders exercised the options to buy the shares.

Prepare the journal entries to record these events.