A. Mark Comp. issued $200,000 face value bonds with a contract rate of 9%. To make the bonds more attractive, the company issued detachable stock warrants at a rate of one warrant for each $100 bond sold. The bonds sold at issuance for 97.5. The value of the bonds without the warrant is considered to be $175,000 and the value of the warrants in the market $35,000

What amount should be allocated to the Bonds and to the Warrants? (percent and dollar value)

Journalize the allocation, i.e., the transaction. (include the discount, PIC, etc.)