On August 1, 2010 Alpha Corporation issued $4,000,000, 10% convertible bonds at 115. The fair value of similar bonds without the conversion feature was 110. On August 1, 2014, Alpha Corporation called its 10% convertible bonds for conversion. The bonds were converted into 160,000 common shares. On August 1, there was $350,000 of unamortized premium applicable to the bonds. At issuance of the bonds the market value of the common shares was $20 per share. The company records the conversion using the book value method. Ignore all interest payments. Prepare the journal entry for the issuance of the bonds in 2010 and the conversion in 2014. The company follows IFRS.