On January 1, 2024, Legoria Co. issued $30 million of 10% nonconvertible bonds at 106. The bonds are due on December 31, 2035. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $60, one share of Legoria Co.s no par common stock. The market price for the warrants is $8 per warrant.

1.Prepare the journal entry at 1/1/2024 to record this transaction.

2.Compare and contrast the accounting for a Convertible Bond and the Non-convertible Bond that included detachable stock warrants.

2.Compare and contrast the accounting for a Convertible Bond and the Non-convertible Bond that included non-detachable stock warrants.