Harley Corporation issued \(\$ 75,000\) of \(6 \%, 10\)-year, nonconvertible bonds with detachable stock purchase warrants. Each \(\$ 1,000\) bond carried 20 detachable warrants, each of which was for one share of Harley common stock, par \(\$ 20\), at a specified exercise price of \(\$ 60\). The bonds sold at 102 including the warrants (no bond price without warrants was available), arid immediately after the date of issuance, the detachable stock purchase warrants were selling at \(\$ 4\) each. All indicated transactions occurred in the same fiscal year.

Required

a. Provide the entry for the issuer at the date of issuance of the bonds.

b. Provide the entry for Harley assuming subsequent tender of all of the warrants by the investors for exercise at the specified exercise price. At this date, the stock was selling at \(\$ 75\) per share.