On April 1, 2018, Lambda Corp issues $18,700,000of 8% bonds at 110. To help with the sale, 6 detachable stock warrants are issued with each $1,000 bond sold. Separately, the bonds are selling at 108 and each warrant is trading separately at $20. Each warrant enables the holder to purchase one share of $5 par common stock at $35. On December 15th, 40% of the warrants were exercised when the common stock was selling at $44. Required: Prepare the journal entries needed at April 1 and December 15.