On January 1, 2016, Williams Co. issued $30 million of 10% nonconvertible bonds at 104. The bonds are due on December 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 Williams Co.’s no par common stock.
1. Prepare the journal entry at 1/1/2016 to record this transaction.