Homework Help Please

Manchester Company issued 1,000 bonds each with a par value of $1,000 and each carry a detachable warrant for the purchase of 4 shares at $40 each. On the date of the bond issue, the bonds could have been at par, and the warrants could have been sold for $80 each separately. The bond was issued for $1,025,000 on Janaury 5, 2020.

a. Prepare a schedule allocating the bond issue receipts to the bond and the warrants.Use the proportional method.

b. Record the issue of the two securities using the proportional method