On September 1, 2018, Schumpeter Conglomerates sold $230,000,000 20-year bonds with a coupon rate

of 3% paid semi-annually. The market rate for a security of similar risk and maturity is 4%. Schumpeter

Conglomerates hired Ivanovs Finance Shack to issue the securities at a cost of 2% of the selling price of

the security. Attached to each $125,000 bond are six detachable warrants allowing for the purchase of 50

shares of no-par common stock for $15 per share. Each warrant is estimated to have a market value of

$60. 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, 2018.

Remember to include the warrant.