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.