On August 1, 2021, National Corporation issued $200,000 of 8% bonds at 99. The bonds mature in 10 years. Each $1,000 bond was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $25, one share of National $5 par common stock. World Company purchased the entire bond issue. On August 2, 2021, the market value per share for National stock was $45 and the market value of each warrant was $6. On March 15, 2023, when National common stock had a market price of $70 per share, World Company exercised all the warrants it held.

Required:

1. Prepare the journal entry on August 1, 2021 to record the issuance of the bonds with detachable warrants by National.
2. Prepare the journal entry on March 15, 2023 to record the exercise of the warrants in the books of National..