P16-8 On January 1, 2017, Salem Corp. issued $1.1 million of five-year, zero-interest-bearing notes along with war- rants to buy 1 million common shares at $22 per share. On January 1, 2017, Salem had 9.3 million common shares out- standing and the market price was $21 per share. Salem Corp. received $1 million for the notes and warrants. If offered alone, on January 1, 2017, the notes would have been issued to yield 11% to the creditor. Assume that the company follows IFRS. Instructions . (a) Prepare the journal entry(ies) to record the issuance of the zero-interest-bearing notes and warrants for the cash consideration that was received. . (b) Prepare an amortization table for the notes using the effective interest method. . (c) Prepare adjusting journal entries for Salem Corp. at the end of its fiscal year of December 31, 2017. . (d) Prepare the journal entry required for Salem Corp. if a quarter of the warrants are exercised on January 1, 2020