Westside

Inc. prepares its financial statements in accordance with IFRS. On January$1,2023$

$,$

the company issued $ $25\mathrm{.}0$

$$million$,5$

$\%,$

five

$-$year

convertible bonds that pay interest$$ semi$-$annually on June $30$ and December $31.$ At the option of the$$ bondholder, and at any time before$$ maturity, each $ $1$ comma $000$

bond was convertible into $35$

of Westside

$$Inc$.\text{'}$s common shares. Westside

raised $ $25\mathrm{.}7$

million from the sale of the bonds. At the time of the$$ sale, the market rate of interest for similar bonds without the conversion feature was $6$

$\%.$

On January$1,2025$

$,$

$ $12\mathrm{.}5$

million of the bonds were converted. The market price of Westside

$$Inc$.\text{'}$s common shares at the time of conversion was $ $35$

per share.

Requirement a$.$ Prepare the journal entry to record the issuance of convertible bonds. $($Prepare all entries on the$$ company's books. Record debits$$ first, then credits. Explanations are not required. Enter all amounts in dollars and not in millions. Round amounts to the nearest$$ dollar.$)$

Requirement b$.$ Prepare the journal entry to record the conversion according to IFRS$($book value$$ method$).($Use a financial calculator for any present value computations. Record debits$$ first, then credits. Explanations are not required. Round amounts to the nearest$$ dollar.$)$