Each of the following situations below are unrelated:

A$)$peacock Company follows IFRS. Peacock issues $6\%$ convertible bonds on June $15,2023$ with the

following characteristics:

Face value of bonds $1,197,700$

Issuance price of bonds $104$

Price at which bonds would have sold without the conversion privilege $102$

Fair value of the conversion privilege attached to all bonds $34,955$

B$)$ Toucan Inc. has $8\%$ convertible bonds outstanding. Some of the bondholders decided to convert

these bonds to common shares on August $29,2023.$ This was the first date on which these bonds

were converted to common shares. Information pertaining to the bonds follows:

Total face value of all bonds $$3988700$

Number of common shares received by bondholders on conversion of the bonds $34,944$

Market value per common share on the date of conversion $32$

Total unamortized premium on date of conversion $319,096$

Value of equity portion of convertible bonds at time of issuance $159,548$

Face value of bonds converted on August $29,20231,796,600$

C$)$ Bluebird Corporation follows ASPE. Bluebird issues $7\%$ bonds on February $1,2023.$ To help the sale,detachable stock warrants are issued with each bond sold. Information pertaining to the bonds

follows:

Face value of bonds $5,994,000$

Each $$1,000$ bond was sold with the following number of warrants $3$

Shortly after issuance, similar bonds without warrants were issued at

the following price: $99$

Shortly after issuance, similar warrants sold at the following price: $10$

Selling price of the bonds with the warrants $101$

Required:

Prepare journal entries for the issuance of bonds in $($a$)$ and the conversion of bonds in $($b$).$

Name the options that Bluebird Corporation has in accounting for the bonds from $($c$).$

Prepare the journal entry required for each option.