1. York Company issued 1,000 bonds each with a par value of $1,000 and each carrying a detachable warrant for the purchase of 4 shares of stock at $40 each.On the day of the bond issue, the bond could have been issued without warrants at par while the warrants could have been sold separately for $60.The amount received for the combined instrument on the date of the issue was $1,025,000.

Using the proportional method, please help me record the issue of the two securities.