The following applies to Luna Company: ~ On 12/31/22, Luna issued 11% $600,000 bonds at 109. v

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The following applies to Luna Company: ~ On 12/31/22, Luna issued 11% $600,000 bonds at 109. v Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase 1 share of $5 par common for $25. The market value of each warrant was $4. There was no market price for the bonds alone. v On 1/5/23, 1 warrant was exercised to obtain a share of common stock; the stock was trading for $32. For simplicity, ignore the interest earned for the 5 days of 2023. Give the entries on 12/31/22 and on 1/5/23 and work for credit