Question: On August 1 2 0 1 8 , Limbaugh Communications issued $ 3 0 million of 1 0 % nonconvertible bonds at 1 0 4

On August 12018, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104. The bonds are due on July 31,2038. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $60, one share of Limbaugh Communications no par common stock. Interstate Containers purchased 20% of the bond issue. On August 12018, the market value of the common stock was $58 per share and the market value of each warrant was $8.
In February 2029, when Limbaughs common stock had a market price of $72 per share and the unamortized discount balance was $1 million, Interstate Containers exercised the warrants it held.
Prepare the journal entries on August 12018 to record the issuance of the bonds by Limbaugh and the investment by Interstate
Prepare the journal entries for Limbaugh and Interstate in February 2029 to record the exercise of the warrants

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