Question: On May 1 , 2 0 2 5 , Blue Company issued 2 , 5 0 0 $ 1 , 0 0 0 bonds at

On May 1,2025, Blue Company issued 2,500 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly
after issuance, the bonds were selling at 99, but the fair value of the warrants cannot be determined.
a. Prepare the entry to record the issuance of the bonds and warrants. (List debit entry before credit entry. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
On May 1,2025, Blue Company issued 2,500 $1,000 bonds at 102.

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