6.2 5 Points The following information is relevant to questions 6.2 and 6.3. Johnson Ltd received $7 million for convertible notes on 1 July 2022. The convertible notes have a life of 3 years, and they offer interest payable in arrears on 30 June each year. The coupon rate of interest is 6% p.a. The convertible notes are issued at their face value, and each note can be converted into one ordinary share in Johnson Ltd at any time in the next three years. At the time of issue, companies with a similar credit rating issued debt securities without conversion options at face value with a coupon rate of 8% p.a. Required: 6.2 At the time of issue, discuss whether Johnson Ltd should recognise the convertible notes as debt, equity or part equity and part debt? Justify your decision. Please type your answer in the answer box below. Enter your answer here 6.3 Prepare the journal entries for initial recognition of the convertible notes on 1 July 2022. Please upload your answer in PDF: Please select file(s) Select file(s)