Exercise 16-9 (Part Level Submission) The following are unrelated transactions. Present the required entries to record each of the transactions. (a) Your answer is correct. On March 1, 2020, Blossom Corporation issued $200,000 of 5% non-convertible bonds at 102, which are due on February 28, 2040. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase one of Blossom's no par value common shares for $50. The bonds without the warrants would normally sell at 93. Blossom prepares its financial statements in accordance with IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit TCash 204000 Bonds Payable 186000 Contributed Surplus - S 18000 (b) Your answer is correct. Ayayai Corp. issued $10,000,000 of par value, 6% convertible bonds at 96. If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 91. Ayayai Corp. has adopted ASPE, and would like to explore all options available to report the convertible bond. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Account Titles and Explanation Option 1: Residual Method Cash 9600000 T T Bonds Payable 9100000 500000 T Contributed Surplus - Option 2: Value Equity component at zero Cash 9600000 T Bonds Payable 9600000 (d) On July 1, 2020, Tien Limited called its 6% convertible bonds for conversion. The $10,000,000 of par value bonds were converted into 1,000,000 common shares. On July 1, there was $75,000 of unamortized discount applicable to the bonds, and the company paid an additional $65,000 to the bondholders to induce conversion of all the bonds. At the time of conversion, the balance in the account Contributed Surplus-Conversion Rights was $200,000, and the bond's fair value (ignoring the conversion feature) was $9,955,000. The company records conversion using the book value method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) a) IFRS: Account Titles and Explanation Debit Credit Loss on Redemption of Bor 65000 Bonds Payable Contributed Surplus - Con 200000 Common Shares Cash 65000 b) ASPE: Account Titles and Explanation Debit Credit Loss on Redemption of Bor Retained Earnings Bonds Payable Contributed Surplus - Con 200000 Common Shares Cash