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Hopkins Corporation issued $5 million of 10-year, 8%, convertible bonds on March 1, 2019, at par. Each $1,000 par value may be converted into 500

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Hopkins Corporation issued $5 million of 10-year, 8%, convertible bonds on March 1, 2019, at par. Each $1,000 par value may be converted into 500 common shares. The bonds were dated March 1, 2019, with interest payable March 1 and September 1 each year with the first interest payment to be paid on September 1, 2019. Bonds without conversion privileges would be trading on the open market to yield a 10% return. On March 1, 2020, after the semi-annual interest payment was made, $1.5 million of these bonds were converted to common shares. Hopkins Corporation follows IFRS. REQUIRED: 1. Prepare the journal entry to record the issuance of the convertible bonds on March 1, 2019. 2. Prepare the journal entry for the semi-annual interest payment on September 1, 2019. 3. Prepare the journal entry for the conversion on March 1, 2020. (Hint: for part b) and c), you may need to create an effective interest rate bond amortization schedule to March 1, 2020.) 4. Prepare the journal entry required on March 1, 2029 assuming no other conversions took place. (Hint: the maturity of the bond and the expiry of the conversion rights.) Hopkins Corporation issued $5 million of 10-year, 8%, convertible bonds on March 1, 2019, at par. Each $1,000 par value may be converted into 500 common shares. The bonds were dated March 1, 2019, with interest payable March 1 and September 1 each year with the first interest payment to be paid on September 1, 2019. Bonds without conversion privileges would be trading on the open market to yield a 10% return. On March 1, 2020, after the semi-annual interest payment was made, $1.5 million of these bonds were converted to common shares. Hopkins Corporation follows IFRS. REQUIRED: 1. Prepare the journal entry to record the issuance of the convertible bonds on March 1, 2019. 2. Prepare the journal entry for the semi-annual interest payment on September 1, 2019. 3. Prepare the journal entry for the conversion on March 1, 2020. (Hint: for part b) and c), you may need to create an effective interest rate bond amortization schedule to March 1, 2020.) 4. Prepare the journal entry required on March 1, 2029 assuming no other conversions took place. (Hint: the maturity of the bond and the expiry of the conversion rights.)

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