Prepare the financial statements for the December 31, 2020 year-end using both IFRS and ASPE for company A.

Prepare a statement of financial position and calculate debt to equity ratio

On January 1, company A issued $1.5 million of five-year, 6% convertible bonds at par value. Each $1,000 bond is convertible into 100 common shares. A similar bond (without conversion feature) would have been issued at a market yield of 9%. On December 31, $200,000 worth of bonds were converted to common shares.

On April 1, the company issued 15,000 8% noncumulative, retractable preferred shares for $100 per share. The shares are retractable by the holder on or after September 1 of the current year, and redeemable at the option of the company on or after September 2 of the current year. Commencing on September 2 the company is required to purchase 10% annually of the total outstanding preferred shares at $105 per share.

When preparing journal entries, prepare the entry that should have been made at the time the transaction occurred.

Discuss the recognition, measurement, and presentation of the above two transactions.