Bonds with Detachable Stock Warrants On July 1, 2020 Salem Corporation issued $3 million of 12% bonds payable in 10 years. Each bond is $1,000. The bonds pay interest semiannually. Each bond includes...

Bonds with Detachable Stock Warrants
On July 1, 2020 Salem Corporation issued $3 million of 12% bonds payable in 10 years. Each bond is $1,000. The bonds pay interest semiannually. Each bond includes detachable warrants giving the bondholder the right to purchase for $30, one share of $1 par value common stock at any time during the next 10 years. The company sold the $3 million dollar bonds at 101. Shortly after the bond issuance, the warrants were sellingfor $70 apiece and the bonds were selling at 99.
Required:
1. Prepare journal to record the issuance of the bonds.
2. Prepare a journal entry if half of the warrants are exercised.
     Date
     Particulars
     Debit
     Credit
    On July 1, 2020
    Cash
    $3030,000
    
    
    Discounts on bonds payable
     $170094
    
    
     Bonds payable
    
    $3000,000
    
     Paid in capital - Stock warrants
    
     $200094
    
    
    
    
    
    (To record the issuance of bonds)
    
    
    
    
    
    
Explanation:
Bonds = $1000 * $0.99 = $990 = $990 /$1060 * $3030,000= $2829906
Warrants = ...