On March $1,2023,$ Golf Land, Inc., $[$GLI$],$ a publicly listed company and a favourite of the PREZ, issued $$300,000$ of $8\%$ non$-$convertible bonds at $107,$ which are due on February $28,2043.$ In addition, each $$1,000$ bond was issued with $25$ detachable stock warrants, and $2$ warrants entitled the bondholder to purchase one of GLI's no par value common shares for $$50.$ The bonds without the warrants would normally sell at $93.$ On March $1,2023,$ the fair value of GLI's common shares was $$40$ per share and the fair value of each warrant was $$2.$What would be the journal entry to record the issuance of the bonds on March $1,2023.$

Question $21$Answer

a$.$

DR Cash $$321,000$; CR Bonds payable $$306,000,$ CR Contributed surplus $-$ Warrants $$15,000$

b$.$

DR Cash $$321,000$; CR Bonds payable $$279,000,$ CR Contributed surplus $-$ Warrants $$42,000$

c$.$

DR Cash $$321,000$; CR Bonds payable $$321,000$

d$.$

DR Cash $321,000$; CR Bonds payable $$302,250,$ CR Contributed surplus $-$ Warrants $$18,750$

e$.$

None of the above answers.