ework- Chapter 14 Saved He 7 On January 1, 2018, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net price of $40.4 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock. Madison records interest by the straight-line method On June 1, 2020, Madison notified bondholders of its intent to call the bonds at face value plus a 2% call premium on July 1, 2020. By June 30 all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted, Required: Assume that Madison Products prepares its financial statements according to IFRS. 1. & 2. Prepare the journal entry for the issuance of the bonds by Madison and interest payment for the June 30, 2018 3. Prepare the journal entries for the June 30, 2020, interest payment by Madison and the conversion of the bonds book value method). eBook Hint Print Complete this question by entering your answers in the tabs below. ferences Reg 1 and 2 Req3 Prepare the journal entry for the issuance of the bonds by Madison and Interest payment for the June 30, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Credit 1 Date General Journal January 01, 2018 Cash Convertible bonds payable Premium on bonds payable Debit 40,400,000 400,000 400,000 2 June 30, 2018 20,000 le raw 11