On January 1, 2021. Madison Products issued $70 million of 6% 10-year convertible bonds at a net price of $709 million Madison recently issued similar, but nonconvertible, bonds at 99 that is. 99% of face amount). The bonds pay interest on June 30 and December 31 Each $1000 bond is convertible into 30 shares of Madison's no par common stock Madison records interest by the straight-line method On June 1, 2023. Medison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2023. By June 30 all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30 Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted In this question, combine the discount on the bonds with the face amount and record the net amount as bonds payable. This is the "net method" When the net method is used, the discount (or premium) is amortized directly to the bonds payable account Required: Assume that Madison Products prepares its financial statements according to international Financial Reporting Standards using the net method 1. & 2. Prepare the journal entries for the issuence of the bonds by Madison and interest payment for the June 30, 2021 3. Prepare the journal entries for the June 30, 2023, interest payment by Madison and the conversion of the bonds book value method) Reg 1 and 2 Req 3 Prepare the journal entries for the issuance of the bonds by Madison and interest payment for the June 30, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars) No General Journal Date January 01, 2021 Cash Convertible bonds payable Equity-conversion option 2 June 30, 2021 Interest expense Convertible bonds payable Cash Reg 1 and 2 Reg3 Debil Cred 70,500,000 O 00.300,000 1,000,000 2.000.000 O 80.000 O 2.100.000 O 000 000 Prepare the journal entries for the June 30, 2023, interest payment by Madison and the conversion of the bonds (book value method). (If no entry is required for a transaction/event, select "he journal entry required in the first acount feld Enter your answers in whole dollars.) Deb Crell 100 Date General Journal " June 30, 2003 Convertible bonds payable Cash 2 June 30, 2023 Convertible bonds payable toy-comeron option Common stock 000 000