On August 1, 2024, Perez Communications issued $30 million of 10% nonconvertible bonds at 104.

1. The bonds are due on July 31, 2044.
2. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $60, one share of Perez Communications no par common stock.
3. Interstate Containers purchased 20% of the bond issue.
4. On August 1, 2024, the market value of the common stock was $58 per share and the market value of each warrant was $8.

In February 2035, when Perez common stock had a market price of $72 per share and the unamortized discount balance was $1 million, Interstate Containers exercised the warrants it held.

Required: Prepare the journal entries for both Perez and Interstate in February 2035, to record the exercise of the warrants.