Shurwood Ltd. issued 5,000,000 8%, 10-year, nonconvertible bonds with detachable warrants for $5,100,000. Shortly after issuance, the warrants trade for $300,000 in total, and the bonds were trading at 99, or $4,950,000, ex-warrants (i.e., without warrants attached).

Required:
1. Provide the journal entry to record the transactions.
2. Provide the journal entry to record the first payment of interest on the convertible bond assuming that the bonds pay interest annually.