Question: Crane Corporation issued 3 , 5 0 0 , five year, 4 % bonds at 1 0 4 on January 1 , 2 0 2

Crane Corporation issued 3,500, five year, 4% bonds at 104 on January 1,2023. Interest is paid annually. Each $1.000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Crane at $10 per share, the price at which Crane shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30,2023,700 of the bond holders exercised the options to buy the shares.
Prepare the journal entries to record these events.

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