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On January 1, 2020, Ivanhoe Corp. issued $1,160,000 of five year, zero-interest-bearing notes along with warrants to buy 1,090,000 common shares at $20 per share.

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On January 1, 2020, Ivanhoe Corp. issued $1,160,000 of five year, zero-interest-bearing notes along with warrants to buy 1,090,000 common shares at $20 per share. On January 1, 2020, Ivanhoe had 9.3 million common shares outstanding and the market price was $19 per share. Ivanhoe Corp. received $1,090,000 for the notes and warrants. If offered alone, on January 1. 2020, the notes would have been issued to yield 11% to the creditor. Assume that the company follows IFRS. Prepare the journal entry to record the issuance of the zero interest bearing notes and warrants for the cash consideration that was received. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. Round answers to decimal places, eg. 5,250.) Date Account Tities and Explanation Debit Credit January 1, 2020 Prepare an amortization table for the notes using the effective interest method. (Round answers to decimal places, es 5,275.) SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION- EFFECTIVE INTEREST METHOD Effective Discount Interest Amortized Car Cash Interest Date Arm 1/1/20 12/31/20 $ 12/31/21 12/31/22 12/31/23 12/31/24 Total $ Prepare adjusting journal entry for Ivanhoe Corp. at the end of its fiscal year of December 31, 2020. (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 for the amounts. Round answers to decimal places, eg. 5,275.) Credit Debit Account Titles and Explanation Date December 31, 2020 e Textbook and Media List of Accounts Prepare the journal entry required for Ivanhoe Corp. if a quarter of the warrants are exercised on January 1, 2023. (Credit account tities are automatically Indented when the amount is entered. Do not indent manually. Round answers to decimal places, es 5,2750) Date Account Titles and Explanation Debit Credit January 1, 2023 e Textbook and Media List of Accounts

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