Tim Corp. issued $3,000,000 ($1,000 each) of 9%, 5-year convertible bonds on March 31, 2023 for $3,388,500. The bonds were dated March 31, 2023 with interest payable March 31 and September 30. The effective rate of interest when the bonds had been issued was 8%. Tilley has a fiscal year end of September 30^th and follows IFRS.

On October 1, 2024, $1,000,000 of these bonds were converted into 23,000 no par common shares. As interest had been paid on September 30, 2024, there was no accrued interest at the time of conversion.

Required:

Prepare journal entries for the following transactions

March 31, 2023. The issuance of the bonds assuming the residual approach is used.

September 30, 2023 Payment of the interest.

October 1, 2023 Conversion of $ 1,000,000 of the bonds into 23,000 no par value common shares, using the book value (carrying value) method.