Izmir A.S.issued convertible bonds at their face value of 111,000 lira on December 31, 2017. The bonds have a 12-year life with interest of 8 percent payable annually. At the date of issue, the prevailing Interest rate for similar debt without a conversion option was 10 percent Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements, Ignore income taxes. Required: a. Prepare journal entries for this compound financial instrument for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP. b. Prepare the entrylles) that the U.S. parent would make on the December 31, 2017, conversion worksheet to convert IFRS balances to U.S. GAAP. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for this compound financial instrument for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round PV factor. Round the final answers to nearest whole dollar.) No Date Credit 1 12/31/2017 General Journal Cash Bonds payable Additional pald-in capital Convertible bonds Debit 111.000 polo 89,380 3 21,620 2 12/31/2017 Cash Bonds payable Oo 111,000 111.000