On July $1,$ Year $1,$ Salem Corporation issued $$3\mathrm{.}6$ million of $9\%$ bonds payable in $10$ years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $$36$ one share of $$1$ par value common stock at any time during the next $10$ years. Salem sold the bonds for $$3\mathrm{.}6$ million. The value of the warrants at the time of issuance was $$144,000.$

Required:

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