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 Limbaugh$$s common stock had a market price of $$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