On Jan. $1,2015,$ Scarlet issued $$200$ million of $5\%$ convertible bonds due in $20$ years at $103.$ Each $$1000$ bonds included $10$ warrants. Each warrant permitted the holder to buy one share of no par common stock at $$20$ at a future date. Violet Corporation purchased $10\%$ of these bonds $($also receiving the associated warrants$).$ The warrants were immediately listed on the stock exchange at $$1$ per warrant.

How many warrants were issued in total?

$200,000,000/1000$

$2,000,000$

On Dec. $31,2021,$ Violet still held all of their initially purchased warrants and exercised all of them purchasing stock. What journal entry does Scarlet record at this time?