Current Attempt in Progress

On July $1,2025,$ Sheridan Corporation issued $$3,500,000$ of $9\%$ bonds payable in $20$ years. The bonds include detachable warrants

giving the bondholder the right to purchase for $$30$ one share of $$1$ par value common stock at any time during the next $10$ years. The

bonds were sold for $$3,500,000.$ The value of the warrants at the time of issuance was $$120,000.$

Prepare the journal entry to record this transaction. $($List all debit entries before credit entries. If no entry is required, select $"$No entry" for the

account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

July $1,2025$

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