so you received cash for 1M

then you need to find the % for the market value of bonds and s/w

1,080,000 bonds

120,000 s/w

total 1,200,000

bonds 90%

s/w 10%

1000000(cash received)*90%=900,000

JE

dr- cash 1,000,000

dr- discount bonds 100,000

cr- bond payable 1000000

cr - s/w 100,000

hope it helps.

The bond proceeds is $1000,000. This will be allocated to bonds payable and Share warrants in the ratio of their market value.i.e,

Bonds payable 1000,0000*1080,000/1200,000=900,000

Share warrants=1000,000*120,000/1200,000=100,000

Entry will be:

DR.Cash 1000,000

Cr. Bonds payable 900,000

Cr. APIC-share warrants 100,000

Hope it helps!

I see that wannabe's entry is more appropriate. Bonds payable has to be credited with its par value and difference accounted as discount!

Sorry, my mistake.