Answer:
a.                                               Debit         Credit
Cash                                       $174,600
Discount on bond payable   $18,941
         Bonds Payable                                  $173,000
         Paid -in Capital - Stock Warrants    $20,541
<u>Workings</u>
Market value of Bonds        155,700
Market value of Warrants    <u>20,760</u>
Total market value               176,460
Value assigned to Bonds = 174,600 / 176,460 * 155,700 = 154,059
Value assigned to Warrants	= 174,600 / 176,460 *20,760 = 20,541
b.                                               Debit       Credit
Cash                                        $174,600
Discount receivable                                 $1,600
          Bonds Payable                                $173,000