JMR Ltd. issued $100,000 of 8%, 8 year, nonconvertible bond with detachable stock purchase warrants. KER Corp. purchased the entire issue. Each $1,000 bond carries 10 warrants. Each warrants entitles KER to purchase one common share for $20. The bond issue sells for 104 exclusive of accrued interest. Shortly after issuance, the warrants trade for $5 each and the bonds were quoted at 105 ex-warrants. Show the allocation of the proceeds to bonds to bonds using the proportional method and give the journal entry required at the time of issue.