Incurring long$-$term debt with an arrangement whereby lenders receive an option to buy common stock during all or a portion of the

time the debt is outstanding is a frequent corporate financing practice. In some situations, the result is achieved through the issuance

of convertible bonds; in others, the debt instruments and the warrants to buy stock are separate.

At the start of the year, Metlock Company issued $$18,100,000$ of $12\%$ bonds along with detachable warrants to buy $1,500,000$ shares

of its $$10$ par value common stock at $$18$ per share. The bonds mature over the next $10$ years, starting one year from date of issuance,

with annual maturities of $$1,810,000.$ At the time, Metlock had $9,600,000$ shares of common stock outstanding. The company

received $$21,618,000$ for the bonds and the warrants. For Metlock Company, $12\%$ was a relatively low borrowing rate. If offered

alone, at this time, the bonds would have sold in the market at a $22\%$ discount.

Prepare the journal entry for the issuance of the bonds and warrants for the cash consideration received. $($Contrast the accounting for

stock warrants with stock rights. List all debit entries before credit entries. If no entry is required, select $"$No entry" for the account titles and

enter $O$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$