Melonie,
Thank you so much for sharing this situation and the outcome. Students make serious mistakes as they progress through their educational careers which result in consequences just as you have outlined. It sounds like progress has been made by both the offenders and offendees. Your maintaining your professional demeanor is to be commended and was the way to handle it. You are the class leader and everyone was looking to you to see how the situation would be handled. I am confident that these two students learned a lot about how to handle themselves in relation to public displays of inappropriate wording.
I know this will good information for other instructors if they should encounter such situations in their own classrooms.
Gary
Dr. Gary Meers