A company issues $1,000,000$ of $7\%,5-$year bonds with detachable stock warrants. The issuance price is $$1,065,000.$ Each $$1,000$ bond has $20$ warrants attached. The warrants entitle each bond holder to purchase one common share for $$11$ per share. Shortly after issuance, the warrants trade for $$5\mathrm{.}30$ per warrant. The bonds trade at $103$ ex$-$warrants.

Required:

 

 $1.$ Prepare the journal entry to record the issuance of the bonds. $$ 

 

$2.$ Prepare the journal entry to record the exercise of the warrants when the market value per share is $$15.($If no entry is required for a transaction$/$event$,$ select $\mathrm{\backslash "}$No journal entry required\" in the first account field.$)$

$3.$ Prepare the journal entry to record the expiration of the warrants expire $($because the warrants are out of the money$).($If no entry is required for a transaction$/$event$,$ select $\mathrm{\backslash "}$No journal entry required\" in the first account field.$)$