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Embassy Company issued $100,000 of 10-year bonds with detachable stock warrants on 1/1/2023. Each $1,000 bond has 10 warrants attached to it, and each warrant

Embassy Company issued $100,000 of 10-year bonds with detachable stock warrants on 1/1/2023. Each $1,000 bond has 10 warrants attached to it, and each warrant allows the holder to purchase a share of common stock for $10 per share regardless of the stock's market value. The bond issue sells for $101,000. On the issue date, the fair value of the stock warrants in total is $5 apiece and the bonds would have sold without the warrants for $97,000. Make the entry for the Embassy on the issue date of the bonds

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