value Problem 7-7 KIAA) On January 1, 2020, Andrea Company issued 4,000 convertible bonds with P1,000 face amount per bond. The bonds have a three-year life and are issued at 105 or a total proceeds of P4,200,000. Interest is payable annually at 6% every December 31. Each bond is convertible into 20 ordinary shares with P50 par When the bonds are issued, the market rate of interest for similar bonds without conversion option is 8%. The PV of 1 at 8% for three periods is .79, and the PV of an ordinary annuity of 1 at 8% for three periods is 2.58. Required: 1. Prepare journal entry to record the original issuance of the convertible bonds. 9. Prepare journal entry to record the full payment of the convertible bonds at maturity on January 1, 2023