A Company Issues Convertible Bonds with Face Value of $5,000,000

question 82

Essay

A company issues convertible bonds with face value of $5,000,000 and receives proceeds of $6,500,000.Each $1,000 bond can be converted,at the option of the holder,into 80 common shares.The underwriter estimated the market value of the bonds alone,excluding the conversion rights,to be approximately $6,300,000.
Requirement:
Record the journal entry for the issuance of these bonds based on IFRS.

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Definitions:

Involuntary Manslaughter

In criminal law, the unlawful killing of another human being caused by negligence.

Voluntary Manslaughter

The intentional killing of another person without premeditation, but under circumstances that can mildly mitigate, but not justify, the act.

Embezzlement

The act of wrongfully appropriating funds or property entrusted to one's care but owned by someone else.

Medical Expenses

Costs incurred for healthcare services, treatments, and procedures to maintain one's health.