Mustang Company issued $100,000 of 10%, 10-year bonds at par. Each of the 100 bonds included five detachable stock warrants. Each warrant entitled the bondholder to purchase one share of common stock for $50. The market value of the common stock was $44 per share, and the market value of each warrant was $2. The journal entry to record the issuance of the bonds would include:

Question 1 options:

	Credit bonds payable $100,000
	Debit premium on bonds payable $1,000
	Debit cash $101,000
	Credit equity stock warrants $50,000