On September 1, 2017, Monty Company sold at 104 (plus accrued interest) 5,040 of its 10%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants.
Each warrant was for one share of common stock at a specified option price of $17 per share.
Shortly after issuance, the warrants were quoted on the market for $3 each.
No fair value can be determined for the Monty Company bonds. Interest is payable on December 1 and June 1. Bond issue costs of $23,200 were incurred.
Prepare in general journal format the entry to record the issuance of the bonds.