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Fort Company issued 6,100 of its $1,000 par value bonds for $1,540, providing total cash...

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Accounting

Fort Company issued 6,100 of its $1,000 par value bonds for $1,540, providing total cash proceeds of $9,394,000. The market price of Fort's common shares on the date that it
issued the bonds was $26 per share. It sold the bonds with 305,000 detachable warrants to acquire 305,000 shares of the company's $2 par value common stock for $26 per
share. That is, each bond carried 50 warrants 6,100 bonds =305,000 shares. Fort had existing bonds outstanding that trade without warrants at $1,300. Prepare the journal entry
to record the issuance of the bonds assuming that the incremental method is used and the market value of the warrants is not reasonably determinable. (Record debits first, then
credits. Exclude explanations from any journal entries.)
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