Question 1 (Issuance, conversion and repurchase of convertible bonds): (17 marks) On January 1, 2020, Ladybird Inc. issued 10,000 of its 5-year, \$1,000 face value, 10\% convertible bonds at an effective interest rate (yield) of 9% with interest payable every December 31 . (Hint: A similar debt instrument without the option feature was issued at 11% yield.) The bonds are convertible at the investor's option into Ladybird's ordinary shares of 10 shares for each bond. Required: a. Prepare the journal entry for Ladybird on January 1, 2020 regarding the bond issuance. Show calculations. (7 marks) b. Interests were paid on December 31, 2020, December 31, 2021 and December 31, 2022. On January 1,2023, all outstanding bonds were converted when the market values per unit of the bonds and ordinary shares were quoted as 106 and $109, respectively. Prepare the journal entry for Ladybird on January 1, 2023 when all outstanding bonds were converted. Show calculations. (5 marks) c. Same as (b) above, but now assume that on January 1, 2023, instead of bond conversion, Ladybird repurchased all outstanding bonds from the market when the market interest rate of a similar bond without the option feature was 10%. Prepare the journal entry for such transaction. Show calculations