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On August 1, 2020, Alpha Corporation called its 10% convertible bonds for conversion into common shares. At the

time the bonds were issued, the Contributed Surplus - Conversion Rights account was credited by an amount representing the equity portion of the convertible bonds. Other information pertaining to the bonds follows: Face value of bonds $6,000,000 Number of shares into which the bonds were converted 217,000 Unamortized bond premium at August 1, 2020 $366,000 Amount by which Contributed Surplus - Conversion Rights account was credited at time of bond issuance $158,000 Market value per common share at time of bond issuance $31 Assume that no other bonds were converted into common shares prior to August 1, 2020. Scenario 2 Beta Inc. issues bonds on January 1, 2020. To help the sale, detachable stock warrants were issued with the bonds. Each warrant can be used to purchase one of Beta's common shares at an exercise price of $15. Other information pertaining to the issue of the bonds follows: Face value of bonds $2,500,000 Coupon rate 8% Number of warrants issued for each $1,000 bond sold 14 Estimated value of bonds without the warrants $2,475,000 Market value of warrants $150,000 Selling price of bonds with detachable stock warrants 104 Required: 1. Prepare the journal entry for the conversion of Alpha Corporation's bonds into common shares on August 1, 2020. 2. the journal entry for the issuance of bonds by Beta Inc. on January 1, 2020. Assume that Beta Inc. follows IFRS

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