(Solution) - On September 1 2008 Sands Company sold at 104 plus -(2025 Original AI-Free Solution)

Paper Details

On September 1, 2008, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 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 $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No market value can be determined for the bonds above. Interest is payable on December 1 and June 1.
Bond issue costs of $30,000 were incurred.

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