The Knopfler Company issues bonds with detachable warrants. The bonds have a face value of $500,000. Each $1,000 bond(500 $1,000 bonds) has attached the right to buy 5 shares of stock. The fair value of the warrants are $10 per warrant(one warrant=one right to buy one share). The fair value of the bonds is .95

Prepare journal entries necessary to record the issuance of the bonds assuming the proceeds from the bonds are $500,000

Assuming the proceeds are $494,000

Assuming the proceeds are $400,000