Convertible bonds Lachapelle Drilling Inc., which follows IFRS, offers ten-year, 6% convertible bonds (par $ 1,000). Interest is paid annually on the bonds. Each $ 1,000 bond may be converted into 50 common shares, which are currently trading at $ 17 per share. Similar straight bonds carry an interest rate of 8%. One thousand bonds are issued at 91. Instructions a) Assume Lachapelle Drilling Ltd. decides to use the residual method and measures the debt first. Calculate the amount to be allocated to the bond and to the option. b) Prepare the journal entry at date of issuance of the bonds under IFRS. Assume that after six years, when the carrying amount of the bonds was $ c) 933,757, the holders of the convertible debt decided to convert their convertible bonds before the bond maturity date. Prepare the journal entry to record the conversion. d) How many shares were issued at the conversion