On July 1, 2019, Salem Corporation issued $2.5 million of 10% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $25, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $2.5 million. The value of the warrants at the time of issuance was $100,000.

Prepare in general journal format the entry to record the issuance of the bonds.