Part A (14 marks) On 1 January 2019, Lin Company issued a convertible bond with a par value of $100,000 in the market for $120,000. (i) The bonds are convertible into 12,000 ordinary shares with a par value of $1 per share. (ii) The bond has a 5-year life and has a stated interest rate of 10%. (iii) Interest payment will be made annually on 31 December, starting from 31 December 2019. (iv) The market interest rate for a similar non-convertible bond is 8%. The following bond amortization schedule is provided for the liability component of the bond. Carrying Amount of Bonds $ 107,986 Date 1/1/19 12/31/19 Cash Paid Interest Expense Premium Amortized $ 10,000 $ 8,639 $ 1,361 106,625 12/31/20 10,000 8,530 1,470 105,155 12/31/21 10,000 8,412 1,588 103,567 12/31/22 10,000 8,285 1,715 101,852 12/31/23 10,000 8.148 1,852 100,000 Required: (Support with detailed calculations.) A1. Prepare the journal entry to record the issuance of the convertible bond on 1 January 2019. (6 marks)