Aylmer is a publicly-traded company, it follows IFRS.

On December 29, 2020, the company issued 400,000 4% 5-year bonds for 108. The bonds were issued to offer a 3% yield. The excess of the amount received compared to the present value was due to the conversion feature.

Each $100 bond can be converted into 100 common shares.

Interest is paid annually. This transaction was NOT recorded in the trial balance.

Please make any calculations (present value), including an amortization schedule, to support journal entries.

Please prepare 2020 journal entries