On January 1,2020. Lakes limited, a private company which follows ASPE standards, Issued 8-year, 6% bonds at par (interest pay able annually on Jan 1), Each $1000 bond is convertible into 30 Lakes common shares. None of the bonds have been converted as of the end of 2021. The present value of the bond without a conversion option is $373159 At the time of issuance and the difference is allocated to the conversion feature.

On Jan 1,2022, 100% of the holders of Lakes's convertible bonds converted their bonds to shares, when Lakes shares were trading at $58 per share. The bonds fair value at the time of conversion was $379969. Lakes offers an additional premium of $300 to bondholders to convert the bond.

a. Prepare the jounal entry Lakes would have made on Jan 1, 2020 te record the issuance of the bonds.

b. Prepare the journal entries to record the conversion

c. How many shares were issued at the time of conversion?