Wildhorse Inc. issued $7.0 milllion of 10-year, 9%, convertible bonds on June 1, 2017 at 98 plus accrued interest. The bonds were dated April 1, 2017, with interest payable April 1 and October 1. Bond discount is amortized semi-annually. Bonds without conversion privileges would have sold at 97 plus accrued interest. On April 1, 2018, $1.75 million of these bonds were converted into 35,000 common shares. Accrued interest was paid in cash at the time of conversion but only to the bondholders whose bonds were being converted. Assume that the company follows IFRS Prepare the entry to record the issuance of the convertible bonds on June 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Debit Credit Bonds payable 7mil 0.97 Date Account Titles and Explanation June 1, 2017 Cash 6965000 Interest payable = [(7 mil * 0.09)/12] * 2 6790000 Bonds Payable Contributed Surplus = 7mil * (0.98-0.97) 105,000 Interest Payable 70000 Contributed Surplus - Conversion Rights Prepare the entry to record the interest expense at October 1, 2017 by pro-rating the number of months. Assume that interest payable was credited when the bonds were issued. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round factor values to decimal places, e.g. 5,275.) decimal places, e.g. O.5275 and final ans wers to 0 Debit Credit Date Account Titles and Explanation October 1, 2017 Interest Paya ble 105000 Interest Expense 266234 Bonds Payable 3734 315000 Cash Prepare the discount and interest payment has been made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. to record the conversion on April 1, 2018. (The book value method is used.) Assume that the entry to record amortization of the bond Contr. Sur. 70,000 * (1.75/7) Credit Date Account Titles and Explanation Debit April 1, 2018 Bonds Payable 1680000 Contributed Surplus - Conversion Rights 17500 Common Shares 1,697,500 Prepare the entry to record the conversion on April 1, 2018. Assume that the entry to record amortization of the bond discount and interest payment has been made by using a computer spreadsheet to calculate the bond discount. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal nlaces. e.a. 5.275.) Debit Credit Date Account Titles and Explanation April 1, 2018 Bonds Payable 1680000 17500 Contributed Surplus -Conversion Rights 1697500 Common Shares