Luka's Company issues $100,000 in 10-year, 8% annual bonds on January 1, 2020. Each bond includes 8 detachable stock warrants that permit the warrant holder to purchase a share of common stock for $25 per share (par = $1 per share) through December 31, 2021. The firm raises $106,000 from the issuance. An investment bank estimates that bonds' fair value is 99% of par and that each stock warrant has a fair value of $11.550 stock warrants are exercised on July 10, 2021 when Luka's stock price was $32 per share and the remaining stock warrants expire on January 1, 2022. Provide all journal entries through January 1, 2022