Gomez Company issues $10,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $9,870,000 and the value of the warrants is $630,000. The bonds with the warrants sold at 101.

The anwer is

Cash 10,100,000

Discount on Bonds Payable 506,000

Bonds Payable 10,000,000

Paid-in CapitalStock Warrants 606,000 ($630,000 $10,500,000 $10,100,000 = $606,000)

I don't understand the Stock Warrants part. Why do I have to do X $10,100,000. Please help me. Thanks!