On July 1, 2020, Salem Corporation issued $1,800,000 of 7% bonds due in 10 years. The bonds pay cash interest semiannually. Each $1,000 bond includes a detachable stock purchase warrant. Each warrant gives the bondholder the right to purchase, for $30, one share of $1 par value common stock at any time during the next 10 years. The bonds were sold at 101. The value of the stock purchase rights at the time of issuance was $90,000. The bonds would sell without warrants at $1,746,000.

a. Record the entry for issuance of bonds using the proportional method.