On August 1, 2017, Jordan books company issued $1,000,000.30 year, 10% non-convertible bonds for $1,040,000. Each $1000 bond was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $40, one share of Jordan books company no par common stock. On August 1, 2017 the market value of the common stock was $38 per share in the market value of each warrant was $6.

Record the issuance of the bonds on August 1, 2017.

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