[Diabel]

On August 1, 2011, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104. The bonds are due on July 31, 2031. 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 1, 2011, the market value of the common stock was $58 per share and the market value of each warrant was $8.

In February 2022, 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.

Required:
(1)

Prepare the journal entries on August 1, 2011, to record the investment by Interstate. (Enter your answers in millions to two decimal places. Omit the "$" sign in your response.)

[Curlyben]

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[Diabel]

I came up with the answers for the Issuer for that question. I was having trouble finding answers for the investor. My journal entries were debit: investment in bonds for 6 and investment in stock warrants. For my credits: cash and discount on bonds. I'm having trouble calculating the amounts.