The excess amount is reported as a premium on bonds payable. It is a liability on the balance sheet and amortized over the life of the bonds.
The excess amount that results from the sum of the fair value of the warrants and the face amount of the bonds exceeding the cash proceeds is reported as a premium on bonds payable. It represents the additional value that investors are willing to pay for the bonds due to the attached warrants.
The premium on bonds payable is reported as a liability on the balance sheet and amortized over the life of the bonds. The amortization reduces the premium over time.
For example, if a company issued bonds with a face value of $1,000 and attached warrants with a market value of $200, and the cash proceeds from the issuance were $1,100, then the premium on bonds payable would be $100 ($1,100 - $1,000 - $200).