On December 1, Junction Company issued 4,000 of its 9%, 10-year, $1,000 par value, nonconvertible...
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On December 1, Junction Company issued 4,000 of its 9%, 10-year, $1,000 par value, nonconvertible bonds with detachable stock purchase warrants at 104. Each bond carried two detachable warrants; each warrant was for one share of common stock at an option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. Fair value for the bonds without the warrants cannot be determined. Interest is payable on December 1 and June 1. Provide the entry to record issuance of the bonds by Junction Company on December 1
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