Metlock Limited issued $35,000,000 of par value, 7% bonds at 99. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $7. Metlock Limited has adopted ASPE. (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.) Account Titles and Explanation Debit Credit Option 1: Residual Method Cash 39600000 Bonds Payable 37200000 2400000 Contributed Surplus - Stock Warrants Option 2: Value Equity component at zero Cash 39600000 Bonds Payable 39600000 On July 1, 2020, Tien Limited called its 9% convertible bonds for conversion. The $38,000,000 of par value bonds were converted into 3.800,000 common shares. On July 1, there was $75,000 of unamortized discount applicable to the bonds, and the company paid an additional $85,000 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 $250,000, and the bond's fair value (ignoring the conversion feature) was $37,955,000. 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: Debit Credit Account Titles and Explanation Loss on Redemption of Bonds 70000 Bonds Payable 36925000 Contributed Surplus - Conversion Rights 200000 Common Shares 37125000 Cash 70000 b) ASPE: Debit Credit Account Titles and Explanation Loss on Redemption of Bonds 3000 Retained Earnings 40000 Bonds Payable 36925000 Contributed Surplus - Conversion Rights 200000 Common Shares 37125000 Cash 70000 On December 1, 2020, Horton Company issued 800 of its $1,000,8% bonds at 103. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 of Horton's common shares. On December 1, 2020, the fair value of the bonds, without the stock warrants, was 95. Horton Company 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 Cash 618000 Bonds Payable 570000 Contributed Surplus - Stock Warrants 48000