Problem 1: AJ On January 1, 2020, Rains-Olsen Company issued 100.000 preferred shares (cumulative 55 dividendland received proceeds of $6,500,000. Buyers of the preferred shares also received a detachable warrant with each share purchased. Each warrant gives the holder the right to buy one common share at $30 per share within in years. The underwriter estimated that the fair market value of the preferred shares alone, excluding the conversion rights, is approximately $62 per share. Shortly after the issuance of the preferred shares, the detachable warrants traded at $5 each. Required: Record the journal entry for the issuance of these shares and warrants. B) On January 1, 2020. Bergen Company issues convertible bonds with face value of $7,000,000 and receives proceeds of $7,500,000. Each $1,000 bond can be converted, at the option of the holder, into 40 common shares The market value of the bonds as debt alone, excluding the conversion rights, would be $7,200,000. Required: Record the journal entry for the issuance of these bonds with conversion rights