Problem 1-Convertible Bonds On December 31, 20x0, an entity issues convertible bonds for total proceeds of $55,250,000 with the following characteristics: Face Value Coupon rate Yield to maturity for bonds of similar risk Maturity Coupon payment dates $50,000,000 3.4% 3% December 31, 20x25 Jun 30, Dec 31 The bonds are convertible at the option of the bond holder. Required - a. b. C. Prepare the journal entry to record the bond issue on December 31, 20x0. On January 2, 20x15, a total of 30% of the bonds are convertible into common shares. Write the journal entry for the conversion. Assume now that the bonds are mandatorily convertible into common shares on the maturity date. Write the journal entries in 20x0 and 20x1 for the bond issue. Also write the journal entries on December 31, 20x25.