1. (Issuance of bonds with detachable warrants) Ruiz Corporation issued $1,500,000 of 8% nonconvertible bonds at 104. Each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. The fair value of Ruiz's common stock was $40 per share and the fair value of the warrants was $2.00. Prepare the journal entry for the issuance of the bonds using the proportional method