On August 1, 2019, Universal Company issued $10 million of 7% convertible bonds at 104. The bonds mature in 20 years. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $40, one share of Universal no par common stock. Weaver Company purchased 10% of the bond issue. On August 1, 2019, the market value per share for United stock was $56 and the market value of each warrant was $7. In March 2025, when Universal common stock had a market price of $70 per share and the unamortized premium balance was $300,000, Weaver exercised the warrants it held. Required: 31. Prepare the journal entries on August 1, 2019, to record (a) the issuance of the bonds by Universaland (b) the 4 purchase of the bonds by Weaver 5 6 7 2. Prepare the journal entries for (a) Universal and (b) Weaver in March 2025 to record the exercise of the warrants.