Dockside Inc. prepares its financial statements in accordance with IFRS. On January$1,2023,$ the company issued $ $15\mathrm{.}0$million$,11\%,$ six$-$year convertible bonds that pay interest$$ semi$-$annually on June $30$ and December $31.$ At the option of the$$ bondholder, and at any time before$$ maturity, each $ $1,000$ bond was convertible into $30$ of Dockside $$Inc$.\text{'}$s common shares. Dockside raised $ $15\mathrm{.}4$ million from the sale of the bonds. At the time of the$$ sale, the market rate of interest for similar bonds without the conversion feature was $12\%.$

On January$1,2025,$ $ $6\mathrm{.}0$ million of the bonds were converted. The market price of Dockside $$Inc$.\text{'}$s common shares at the time of conversion was $ $35$ per share.

Required

a$.$ Prepare the journal entry to record the issuance of convertible bonds.

b$.$ Prepare the journal entry to record the conversion of the bonds.

Requirement a$.$ Prepare the journal entry to record the issuance of convertible bonds. $($Prepare all entries on the$$ company's books. Record debits$$ first, then credits. Explanations are not required. Enter all amounts in dollars and not in millions. Round amounts to the nearest$$ dollar.$)$

Date

Accounts

Debit

Credit

January $1,2023$