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Pronghorn Corporation issued 5,400, five year, 3% bonds at 104 on January 1, 2020. Interest is paid annually. Each $1,000 bond carried one detachable warrant

Pronghorn Corporation issued 5,400, five year, 3% bonds at 104 on January 1, 2020. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Pronghorn at $10 per share, the price at which Pronghorn shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30, 2020, 1,080 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2020

Cash 5616,000
Bonds payable ?
Contributed surplus - stock warrants ?

Jun. 30, 2020

Cash 1,080,000
Contributed surplus - stock warrants ?
common shares ?

The journal entries and the cash amounts provided are correct just answer the one with question marks please and thank you!

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