Question 1 (7 points) Acme Corporation issued on February 1, 2020 a $3,000,000, 5.25% 10 year bond for $3,160,000. The bonds were dated February 1, 2020 and pay interest semi-annually each July 31 and January 31. The market rate of interest for debt of similar risk without a conversion option is 5%. The bond can be repaid in cash at maturity or can be converted into common shares at the investor's option. The conversion rate is 40 common shares for every $1,000 bond held. Round all answers to the nearest dollar Required: 1. Provide the entry to record the issuance of the bond. (5 Marks) 2. Which level of measurement from the fair value hierarchy was used to prepare your journal entry in part '1'? What is the method used to allocate the valuation between debt and equity? (2 Marks) : Format Answer: Part (1) GENERAL JOURNAL Question 1 (7 points) Acme Corporation issued on February 1, 2020 a $3,000,000, 5.25% 10 year bond for $3,160,000. The bonds were dated February 1, 2020 and pay interest semi-annually each July 31 and January 31. The market rate of interest for debt of similar risk without a conversion option is 5%. The bond can be repaid in cash at maturity or can be converted into common shares at the investor's option. The conversion rate is 40 common shares for every $1,000 bond held. Round all answers to the nearest dollar Required: 1. Provide the entry to record the issuance of the bond. (5 Marks) 2. Which level of measurement from the fair value hierarchy was used to prepare your journal entry in part '1'? What is the method used to allocate the valuation between debt and equity? (2 Marks) : Format Answer: Part (1) GENERAL JOURNAL