Solution :
The cash received on the issue of the bond   785,400   [tex]$=770 \times 1000 \times 102\%$[/tex]
The bond market value without warrant      731,500   [tex]$=770\times 1000 \times 95\%$[/tex]
Bond total par value                       770,000   [tex]$=770\times 1000$[/tex]
The initial carrying value of the bon payable   $ 746,130   [tex]$=\frac{731,500 \times 785,400}{770,000}$[/tex]
 Thus the initial carrying would be = $ 746,130
