This question has two parts, and you are required to answer both parts (i.e. A & B). PART A (12 marks): On 1 July 2017, Adele Ltd issued 20,000 convertible notes. The notes had a five-year term and were issued at a face value of $100 per note. Interest was payable annually on 30 June each year at 5% per annum in arrears. Each note was convertible at the option of the holder into 10 ordinary shares on or before maturity. On 1 July 2017, the market interest rate for similar notes, without a conversion option, was 10% per annum. REQUIRED: Your answers must comply with AASB 132 Financial Instruments: Disclosure and Presentation and AASB 9 Financial Instruments'. a) Prepare a journal entry to record the issue of the convertible notes by Adele Ltd on 1 July 2017 b) Prepare journal entries to record the payments of interest to note holders by Adele Ltd on 30 June 2018 c) Assume that all of the notes are converted into ordinary shares at the end of the fifth year ending 30 June 2022 (following the interest payment). Prepare a journal entry to record the conversion of notes into ordinary shares in the books of Adele Ltd. Show all calculations and round them to the nearest dollar amount. Present value tables are provided at the end of the paper. Insert your answers in the spaces provided. Provide ALL necessary explanations to support your answers. (a) PART B (8 marks): In distinguishing financial liabilities from equity, legal form is the most important factor to examine REQUIRED: Do you agree with this statement? Relate your discussion to the notion of equity risk. Provide two examples to substantiate your discussion concerning the usefulness of equity risk in determining the classification of financial instruments. Hint: As the name equity risk implies, it is the risk of holding equity instead of holding other forms of investments. What do you think can be the risks associated with holding equity? Insert your answers in the spaces provided. Provide ALL necessary explanations to support your answers