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On May 1, 2022, XYZ Co. issued $300,000 of 7% bonds at 103, which are due on April 30, 2032. Twenty (20) detachable stock warrants

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On May 1, 2022, XYZ Co. issued $300,000 of 7% bonds at 103, which are due on April 30, 2032. Twenty (20) detachable stock warrants entitling the holder to purchase for $40 one share of XYZ's Common Stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2022, the fair value of XYZ's Common Stock was $35 per share and of the warrants was $2 each. Prepare a journal entry on May 1, 2022 to record the issue of bonds and detachable warrants using the Proportional Method

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