Question $2$

$3$ pts

On January $2,$ Year $1,$ BlueWater Inc. issued $$15$ million $6\%$ bonds due in $2020$ at $103.$ With each $$1,000$ bond were $15$ detachable warrants. Each warrant permitted the holder to buy one share of common stock at $$26$ per share. After issuance, the warrants were listed at $$6$ on a stock exchange. The entry to record the bond issuance should include:

Debit to Discount on Bonds Payable for $$1,350,000$

Debit to Discount on Bonds Payable for $$900,000$

None of the other answers

Credit to Discount on Bonds Payable for $$1,350,000$

Debit to Premium on Bonds Payable for $$900,000$