Problem #2
On April 1, 2014, Windel Corporation issued bonds with detachable warrants. Information related to these bonds is shown below:
	Face value of bonds			$305,000
	Stated rate of interest			10%
	Bonds issued at			102
	Each $1,000 bond was sold with			26	detachable warrants
	Each warrant allowed the investor to purchase one share of common stock for			$18
	The par value of the common stock is			$8
	On April 1, 2014 the market values were:
		Common stock		$13
		Warrants		$2
In February 2019, when Windel's common stock had a market price of $30 per share, one-third of the warrants were exercised.
Required:	a. Prepare the journal entry for the issuance of the bonds with the detachable warrants.
	b. Prepare the journal entry to record the exercise of the warrants.