(Solution) - On July 1 2007 Salem Corporation issued 3 million of -(2025 Original AI-Free Solution)

Paper Details

On July 1, 2007 Salem Corporation issued $3 million of 12% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $30, one share of $1 par value common stock at any time during the next 10 years. The company sold the bonds for $3 million. The value of the warrants at the time of issuance was $200,000.

Required
Prepare in general journal format the entry to record the issuance of the bonds.