do required

follows ASPE

Marathon Corporation issued a series of 10-year bonds on January 1, 2020. Interest is paid annually. Each $1,000 bond carried 1 detachable warrant allowing the holder to purchase common shares in Marathon at $7 per share. On July 31, 2020, some of the bond holders exercised the options to buy the shares. Other information pertaining to the bonds follows: 2,200 6% 101 Number of bonds issued Stated interest rate for bonds Price at which bonds issued Number of shares that can be purchased with each detachable warrant Similar bonds without the attached warrants would have been issued for the following proceeds 260 $ 1,893,046 98 Number of bond holders who exercised the options on July 31 Shortly after issuance, each warrant was selling at the following amount Assume that Marathon follows IFRS. 159 Required: a) Prepare the journal entry for the issuance of the bonds on January 1, 2020. b) Prepare the journal entry for the exercise of the warrants on July 31, 2020. c) Assume instead that Marathon follows ASPE. Identify the 3 methods that can be used to account for the issuance of the bonds on January 1, 2020, and prepare the journal entry required for each method