A. Hall & Company issues $4,000,000 in 6% bonds with detachable warrants of 10 warrants for each $1,000 bond. The bonds are issued at 102. Record the issuance under the following assumptions: Assume that the fair value of the warrants are $5.00 or $200,000 and the bonds would have been issued at 99.

Prepare the journal entry to record the issuance.