On January 1 2024 a public company, John Cruz corporation (jcc) issued $1,000,000 of 8%, five year, convertible debentures. Intrest paid semi -annually on June 30th and December 31st. The debentures are convertible at the investors option. The conversion ratio is 20 common shares for each $1,000 bond. Market interest rates for non-convertible bonds is similar risk and term are 7%. The net proceeds received by ccc were 1,200,000. CCC uses gross method to account for bonds.

Prepare journal entry to recird bond issuance on Jan 1 2024

Prepare june 30 2024 entry to record interest expense assuming that ccc amortizes bond premium and discount using the method of ifrs