On September $30,2023,$ Crane Inc. issued $$3,220,000$ of $10-$year, $8\%$ convertible bonds for $$3,703,000.$ The bonds pay interest on

March $31$ and September $30$ and mature on September $30,2033.$ Each $$1,000$ bond can be converted into $80$ no par value common

shares. In addition, each bond included $20$ detachable warrants. Each warrant can be used to purchase one common share at an

exercise price of $$15.$ Immediately after the bond issuance, the warrants traded at $$3$ each. Without the warrants and the conversion

rights, the bonds would have been expected to sell for $$3,381,000.$

On March $23,2026,$ half of the warrants were exercised. The common shares of Crane were trading at $$20$ each on this day.

Immediately after the payment of interest on the bonds, on September $30,2028,$ all bonds outstanding were converted into common

shares. Assume the entity follows IFRS.

$($a$)$

$$ Your answer is partially correct.

Prepare the journal entry to record the issuance of the bonds on September $30,2023.($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 O for

the amounts List all debit entries before credit entries.$)$