On September 1, 2016, Schumpeter Conglomerates sold $250,000,000 20-year bonds with a coupon rate of 12% paid semi-annually.The market rate for a security of similar risk and maturity is 10%. Schumpeter Conglomerates hired Ivanov's Finance Shack to issue the securities at a cost of $750,000.Attached to each $100,000 bond are five detachable warrants allowing for the purchase of one hundred shares of no-par common stock for $25 per share.Each warrant is estimated to have a market value of $20.Record journal entries for the issuance of the bond, the first two interest payments, and any required adjusting entries for the fiscal year ending December 31, 2016.