Oriole Inc. issued $6 million of 10-year, 10% convertible bonds on June 1, 2020, at 99 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semi-annually. Bonds without conversion privileges would have sold at 98 plus accrued interest. On April 1, 2021, $1.50 million of these bonds were converted into 30,000 common shares. Accrued interest was paid in cash at the time of conversion. Assume that the company follows IFRS. Prepare the entry to record the interest expense at October 1,2020, by pro-rating the number of months. Start by calculating the effective rate on the bonds using (1) a financial calculator or (2) Excel functions. Assume that interest payable was credited when the bonds were issued. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round effective interest rate to 4 decimal places, eg. 3.5275% and final answers to 0 decimal places, eg. 5,275.) Debit Credit Date October 1,2020 Account Titles and Explanation