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Morris Inc issued 1000, $1,000 bonds at 103. Each bond was issued with 2 (two) detachable stock warrants. After issue, the bonds were seting in

Morris Inc issued 1000, $1,000 bonds at 103. Each bond was issued with 2 (two) detachable stock warrants. After issue, the bonds were seting in the market at 96. The market price of the warrants without the bonds cannot be determined. If Morris Inc. uses the Incremental Method to record this bond issue, the journal entry would include O a credit to Discount on Bonds Payable $20,000 O b. credit to Paid In Capital-Warrants $30,000 Occredit to Premium on Bonds Payable $30,000 O d.credit to Bonds Payable $980,000

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