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Izmir A.S.issued convertible bonds at their face value of 112,000 lira on December 31, 2017. The bonds have a 8-year life with interest of 13 percent payable annually. At the date of issue, the prevailing interest rate for similar debt without a conversion option was 15 percent Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: a. Prepare journal entries for this compound financial instrument for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP b. Prepare the entryies) that the U.S. parent would make on the December 31, 2017, conversion worksheet to convert IFRS balances to Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for this compound financial instrument for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round PV factor. Round the final answers to nearest whole dollar) No 1 Date 12/31/2017 Debit General Journal Cash Bonds payable Additional paid in capital - Convertible bonds Credit OO 112,000 Record the entry for the issue of bonds as per U.S. GAAP. Note: Enter debits before credits. Date General Journal Debit Credit 12/31/2017 Cash Bonds payable 112,000 112,000 Required A Required B Prepare the entry(les) that the U.S. parent would make on the December 31, 2017, conversion worksheet to convert IFRS b U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do nou factor. Round the final answers to nearest whole dollar.) View transaction list Journal entry worksheet