000 Compound Instruments 40000 1/4 ncludes two components cial instrument invert CO Chapter 15 Assignment Question 3 On January 1, 2019, Wayward Co, issued a $22 million, 8%, 6-year convertible bond with annual coupon payments. Each $1,000 bond was convertible into 35 shares of Wayward's common shares Moonbeam Investments purchased the entire bond issue for $22.7 million on January 1, 2019. Moonbeam estimated that without the conversion feature, the bonds would have sold for $21,013. (to yield 9%). On January 1, 2020, Moonbeam converted bonds with a par value of $8.8 million. At the time of conversion, the shares were selling at $30 each. a. Prepare the journal entry to record the issuance of convertible bonds. Date Explanation/Account Debit Credit b. Prepare the journal entry to record the conversion according to IFRS (book value method). Date Explanation/Account Debit Credit Calculations