### Prepare journal entries for the issuance of the notes

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Question - At the start of the year, Triple T Company issued \$6 million of 7% notes along with warrants to buy 400,000 shares of its \$10 par value common stock at \$18 per share. The notes mature over the next 10 years, starting one year from date of issuance, with annual maturities of \$600,000. At the time, Triple T had 3,200,000 shares of common stock outstanding, and the market price was \$23 per share. The company received \$6,680,000 for the notes and the warrants. For Triple T, 7% was a relatively low borrowing rate. If offered alone, at this time, the notes would have been issued at a 20 to 24% discount.

Prepare journal entries for the issuance of the notes and warrants for the cash consideration received. Notes would have been issued at a 20% to 24% discount.

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