Exercise 14-28 (Algo) Bonds with detachable warrants [LO14-5) On August 1 2021, Limbaugh Communications issued $20 million of 9% nonconvertible bonds at 103. 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 $50. one share of Limbaugh Communications no par common stock, Interstate Containers purchased 20% of the bond issue. On August 1 2021, the market value of the common stock was 544 per share and the market value of each warrant was 59 In February 2032 when Limbough's common stock had a market price of 558 per share and the namortized discount balance was $2 million, Interstate Containers exercised the warrants it held. Required: 1. Prepare the journal entries on August 1, 2021, to record (o) the issuance of the bonds by Limbaugh and (b) the investment by Interstate 2. Prepare the journal entries for both Limbaugh and Interstate in February 2032. to record the exercise of the warrants Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare the journal entries on August 1, 2021. to record (b) the issuance of the bonds by Limbaugh and (b) the investment by Interstate. (if no entry is required for a transaction event selectio joomatentry required in the rest account Enter your answers in millions and found to 2 decimal places 5,500,000 should be entered 5 50). View actionist 2 ere to search 8 '511 7. 8 103