Exercise 14-28 FOR THE ISSUER ONLY - NOT THE INVESTOR On August 1, 2021, Limbaugh Communications issued $42,000,000 of 10% nonconvertible bonds at 105. 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 $45 per share and the market value of each warrant was $5. In February 2032, when Limbaugh's common stock had a market price of $59 per share and the unamortized discount balance was $1 million, Interstate Containers exercised the warrants it held. Prepare the necessary journal entries on the dates shown below. Issuance of the convertible bonds Date Account 8/1/21 Debit Debit Credit Equity - Stock Warrants Debit Credit Exercise of the warrants Date Account 2/1/32 Equity - Stock Warrants