a) On 1 July 2020, Lone Berhad issued 10,000 RM100 convertible bonds at par. The bonds have a coupon rate of 4% (interest payable in arrears) and are redeemable in 4 years on 30 June 2024.Equivalent bonds without the option for conversion carry an interest rate of 7%. Required: Explain, with journals, the treatment of the convertible bonds on initial recognition and in the financial statements for the year ended 30 June 2021.