Question 18 Not yet answered Marked out of 2DO Flag question DOUGLAS Company issued a convertible Bond on January 2019. The tolowing information about the convertible Bond is available: Face Value = $2,500,000; Life: 5 years, Interest Annual on 31 December, Issued at Par stated rate (coupon) 5%, Assume an effective rate (Yield) of 6% (this is the rate on equivalent non-convertible bonds) Convertible Into: 500,000 Ordinary Shares with a par value of $3 each The Present Value (PV) Factor for (N=5 and Yield = 6%) is 07473. The Annuity Factor (N = 5 and Yield = 6%) = 4.2124 (use these EXACT figures in your calculations) MCQ Assume the Bond is converted into shares at the end of Year 5. On that date, what is the correct journal entry with respect to BONDS PAYABLE? Select one: a DEBIT $2,237,509.00 b. DEBIT $2,447,303.47 DC DEBIT $2,445,314 22 d DEBIT $2,500,000.00 e. None of these answers